Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-35106 | ||
Entity Registrant Name | AMC Networks Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-5403694 | ||
Entity Address, Address Line One | 11 Penn Plaza | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10001 | ||
City Area Code | 212 | ||
Local Phone Number | 324-8500 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | ||
Trading Symbol | AMCX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 879 | ||
Documents Incorporated by Reference | Certain information required in Item 10 through Item 14 of Part III of this Annual Report on Form 10-K is incorporated herein by reference to the Registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders, which shall be filed with the Securities and Exchange Commission pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended, within 120 days of the Registrant's fiscal year end . | ||
Entity Central Index Key | 0001514991 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 31,524,521 | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,484,408 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 930,002 | $ 892,221 |
Accounts receivable, trade (less allowance for doubtful accounts of $8,725 and $8,030) | 722,185 | 815,444 |
Current portion of program rights, net | 10,807 | 10,068 |
Prepaid expenses and other current assets | 286,875 | 282,453 |
Total current assets | 1,949,869 | 2,000,186 |
Property and equipment, net of accumulated depreciation of $344,906 and $286,133 | 202,034 | 225,791 |
Program rights, net | 1,762,939 | 1,731,838 |
Intangible assets, net | 354,676 | 399,434 |
Goodwill | 643,419 | 709,344 |
Deferred tax assets, net | 13,618 | 11,334 |
Operating lease right-of-use assets | 108,229 | 125,866 |
Other assets | 599,052 | 545,153 |
Total assets | 5,633,836 | 5,748,946 |
Current Liabilities: | ||
Accounts payable | 172,009 | 173,207 |
Accrued liabilities | 419,065 | 340,407 |
Current portion of program rights obligations | 374,115 | 307,054 |
Deferred revenue | 134,883 | 167,071 |
Current portion of long-term debt | 33,750 | 33,750 |
Current portion of lease obligations | 36,411 | 36,596 |
Total current liabilities | 1,170,233 | 1,058,085 |
Program rights obligations | 200,869 | 218,321 |
Long-term debt, net | 2,778,703 | 2,804,720 |
Lease obligations | 124,799 | 151,839 |
Deferred tax liabilities, net | 112,642 | 163,600 |
Other liabilities | 139,108 | 165,860 |
Total liabilities | 4,526,354 | 4,562,425 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 253,669 | 283,849 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 45,000 shares authorized; none issued | 0 | 0 |
Paid-in capital | 360,251 | 347,971 |
Accumulated earnings | 2,105,641 | 2,098,047 |
Treasury stock, at cost (34,593 and 34,593 shares Class A Common Stock, respectively) | (1,419,882) | (1,419,882) |
Accumulated other comprehensive loss | (239,798) | (175,818) |
Total AMC Networks stockholders' equity | 806,988 | 851,088 |
Non-redeemable noncontrolling interests | 46,825 | 51,584 |
Total stockholders' equity | 853,813 | 902,672 |
Total liabilities and stockholders' equity | 5,633,836 | 5,748,946 |
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock | 661 | 655 |
Class B Common Stock | ||
Stockholders' equity: | ||
Common stock | $ 115 | $ 115 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, trade, allowance for doubtful accounts | $ 8,725 | $ 8,030 |
Property and equipment, accumulated depreciation | $ 344,906 | $ 286,133 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 360,000,000 | 360,000,000 |
Common stock, shares, issued (in shares) | 66,118,000 | 65,485,000 |
Common stock, shares, outstanding (in shares) | 31,525,000 | 30,892,000 |
Treasury stock (in shares) | 34,593,000 | 34,593,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares, issued (in shares) | 11,484,000 | 11,484,000 |
Common stock, shares, outstanding (in shares) | 11,484,000 | 11,484,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues, net | $ 3,096,545 | $ 3,077,608 | $ 2,814,956 |
Operating expenses: | |||
Technical and operating (excluding depreciation and amortization) | 1,515,902 | 1,432,083 | 1,401,591 |
Selling, general and administrative | 896,817 | 891,734 | 708,820 |
Depreciation and amortization | 107,227 | 93,881 | 104,606 |
Impairment and other charges | 40,717 | 159,610 | 122,227 |
Restructuring and other related charges | 448,966 | 10,378 | 35,068 |
Total operating expenses | 3,009,629 | 2,587,686 | 2,372,312 |
Operating income (loss) | 86,916 | 489,922 | 442,644 |
Other income (expense): | |||
Interest expense | (133,762) | (129,073) | (138,610) |
Interest income | 13,326 | 10,243 | 30,032 |
Loss on extinguishment of debt | 0 | (22,074) | (2,908) |
Miscellaneous, net | 3,568 | 25,214 | 71,221 |
Total other expense | (116,868) | (115,690) | (40,265) |
Income (loss) from operations before income taxes | (29,952) | 374,232 | 402,379 |
Income tax benefit (expense) | 40,980 | (94,393) | (145,391) |
Net income including noncontrolling interests | 11,028 | 279,839 | 256,988 |
Net income attributable to noncontrolling interests | (3,434) | (29,243) | (17,009) |
Net income attributable to AMC Networks' stockholders | $ 7,594 | $ 250,596 | $ 239,979 |
Net income per share attributable to AMC Networks' stockholders: | |||
Basic (in dollars per share) | $ 0.18 | $ 5.92 | $ 4.70 |
Diluted (in dollars per share) | $ 0.17 | $ 5.77 | $ 4.64 |
Weighted average common shares: | |||
Basic (in shares) | 43,135 | 42,361 | 51,016 |
Diluted (in shares) | 43,731 | 43,439 | 51,733 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interests | $ 11,028 | $ 279,839 | $ 256,988 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (66,630) | (43,783) | 33,562 |
Unrealized gain (loss) on interest rate swaps | 0 | 2,403 | (437) |
Other comprehensive income (loss), before income taxes | (66,630) | (41,380) | 33,125 |
Income tax benefit (expense) | 2 | (577) | 114 |
Other comprehensive income (loss), net of income taxes | (66,628) | (41,957) | 33,239 |
Comprehensive income (loss) | (55,600) | 237,882 | 290,227 |
Comprehensive income attributable to noncontrolling interests | (786) | (28,154) | (17,487) |
Comprehensive income (loss) attributable to AMC Networks' stockholders | $ (56,386) | $ 209,728 | $ 272,740 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Paid-in Capital | Accumulated Earnings | Accumulated Earnings Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Loss | Total AMC Networks Stockholders' Equity | Total AMC Networks Stockholders' Equity Cumulative Effect, Period of Adoption, Adjustment | Non-redeemable Noncontrolling Interests |
Beginning Balance at Dec. 31, 2019 | $ 691,505 | $ (1,956) | $ 639 | $ 115 | $ 286,491 | $ 1,609,428 | $ (1,956) | $ (1,063,181) | $ (167,711) | $ 665,781 | $ (1,956) | $ 25,724 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income attributable to AMC Networks’ stockholders | 239,979 | 239,979 | 239,979 | |||||||||
Net income attributable to non-redeemable noncontrolling interests | 1,131 | 1,131 | ||||||||||
Distributions to noncontrolling members | (1,037) | (1,037) | ||||||||||
Other comprehensive income (loss) | 33,239 | 32,761 | 32,761 | 478 | ||||||||
Share-based compensation expenses | 52,908 | 52,908 | 52,908 | |||||||||
Treasury stock acquired | (356,701) | (356,701) | (356,701) | |||||||||
Restricted stock units converted to shares | (15,967) | 7 | (15,974) | (15,967) | ||||||||
Ending Balance at Dec. 31, 2020 | 643,101 | 646 | 115 | 323,425 | 1,847,451 | (1,419,882) | (134,950) | 616,805 | 26,296 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income attributable to AMC Networks’ stockholders | 250,596 | 250,596 | 250,596 | |||||||||
Net income attributable to non-redeemable noncontrolling interests | 12,013 | 12,013 | ||||||||||
Transfer from redeemable noncontrolling interest | 18,367 | 18,367 | ||||||||||
Distributions to noncontrolling members | (4,282) | (4,282) | ||||||||||
Acquisition of noncontrolling interest | 0 | (279) | (279) | 279 | ||||||||
Other comprehensive income (loss) | (41,957) | (40,868) | (40,868) | (1,089) | ||||||||
Share-based compensation expenses | 47,925 | 47,925 | 47,925 | |||||||||
Proceeds from exercise of stock options | 9,795 | 9,795 | 9,795 | |||||||||
Net share issuance under employee stock plans | (32,886) | 9 | (32,895) | (32,886) | ||||||||
Ending Balance at Dec. 31, 2021 | 902,672 | 655 | 115 | 347,971 | 2,098,047 | (1,419,882) | (175,818) | 851,088 | 51,584 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income attributable to AMC Networks’ stockholders | 7,594 | 7,594 | 7,594 | |||||||||
Net income attributable to non-redeemable noncontrolling interests | 6,708 | 6,708 | ||||||||||
Purchase of noncontrolling interest, net of tax | (4,363) | (3,066) | (3,066) | (1,297) | ||||||||
Distributions to noncontrolling members | (7,522) | (7,522) | ||||||||||
Other comprehensive income (loss) | (66,628) | (63,980) | (63,980) | (2,648) | ||||||||
Share-based compensation expenses | 37,684 | 37,684 | 37,684 | |||||||||
Net share issuance under employee stock plans | (22,332) | 6 | (22,338) | (22,332) | ||||||||
Ending Balance at Dec. 31, 2022 | $ 853,813 | $ 661 | $ 115 | $ 360,251 | $ 2,105,641 | $ (1,419,882) | $ (239,798) | $ 806,988 | $ 46,825 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income including noncontrolling interests | $ 11,028 | $ 279,839 | $ 256,988 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 107,227 | 93,881 | 104,606 |
Impairment and other charges | 40,717 | 16,699 | 122,227 |
Share-based compensation expenses related to equity classified awards | 29,986 | 47,925 | 52,908 |
Non-cash restructuring and other related charges | 336,744 | 4,329 | 5,359 |
Amortization and write-offs of program rights | 1,008,470 | 909,339 | 923,886 |
Amortization of deferred carriage fees | 34,234 | 29,709 | 28,231 |
Unrealized foreign currency transaction loss (gain) | 8,692 | (16,882) | 3,099 |
Amortization of deferred financing costs and discounts on indebtedness | 7,733 | 7,729 | 8,005 |
Loss on extinguishment of debt | 0 | 22,074 | 2,908 |
Bad debt expense (recoveries) | 2,202 | 5,337 | (2,843) |
Deferred income taxes | (50,689) | 34,010 | 23,159 |
Gains on investments | (4,084) | (1,306) | (97,617) |
Write-down of non-marketable equity securities and note receivable | 0 | 0 | 20,000 |
Other, net | (7,667) | (7,216) | (594) |
Changes in assets and liabilities: | |||
Accounts receivable, trade (including amounts due from related parties, net) | 70,371 | (56) | 63,337 |
Prepaid expenses and other assets | (34,069) | (183,861) | 64,060 |
Program rights and obligations, net | (1,347,351) | (1,297,782) | (850,013) |
Income taxes payable | (148) | (3,467) | 6,703 |
Deferred revenue | (63,622) | 126,832 | 7,202 |
Deferred carriage fees, net | (39,590) | (53,065) | (8,833) |
Accounts payable, accrued liabilities and other liabilities | 71,650 | 129,406 | 15,958 |
Net cash provided by operating activities | 181,834 | 143,474 | 748,736 |
Cash flows from investing activities: | |||
Capital expenditures | (44,272) | (42,572) | (46,595) |
Return of capital from investees | 1,771 | 0 | 1,872 |
Acquisition of investments | (5,002) | (30,273) | (5,440) |
Loans to investees | (2,456) | 0 | 0 |
Cash paid on distribution of business | 0 | (7,052) | 0 |
Principal payments received on loans to investees | 720 | 20,000 | 5,000 |
Payments for acquisitions of businesses, net of cash acquired | 0 | (62,055) | 0 |
Proceeds from sale of investments | 9,854 | 95,370 | 10,000 |
Net cash used in investing activities | (39,385) | (26,582) | (35,163) |
Cash flows from financing activities: | |||
Proceeds from the issuance of long-term debt | 0 | 986,000 | 6,000 |
Principal payments on long-term debt | (33,750) | (1,016,500) | (262,250) |
Deemed repurchases of restricted stock units | (22,332) | (32,886) | (15,967) |
Purchase of treasury stock | 0 | 0 | (356,701) |
Proceeds from stock option exercises | 0 | 9,795 | 0 |
Principal payments on finance lease obligations | (3,576) | (3,800) | (3,261) |
Purchase of noncontrolling interests | (2,500) | 0 | 0 |
Contributions from noncontrolling interests | 0 | 2,702 | 0 |
Distributions to noncontrolling interests | (34,957) | (29,414) | (15,819) |
Net cash used in financing activities | (97,115) | (84,103) | (647,998) |
Net increase in cash and cash equivalents from operations | 45,334 | 32,789 | 65,575 |
Effect of exchange rate changes on cash and cash equivalents | (7,553) | (29,094) | 6,781 |
Cash and cash equivalents at beginning of year | 892,221 | 888,526 | 816,170 |
Cash and cash equivalents at end of year | $ 930,002 | $ 892,221 | $ 888,526 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business AMC Networks Inc. ("AMC Networks") and its subsidiaries (collectively referred to as the "Company," "we," "us," or "our") own and operate entertainment businesses and assets. The Company is comprised of two operating segments: • Domestic Operations: Includes our programming services and AMC Broadcasting & Technology. Our programming services consist of our five national programming networks, our global streaming services, our AMC Studios operation and IFC Films. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our global streaming services consist of our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE), AMC+ and other streaming initiatives. Our AMC Studios operation produces original programming for our programming networks and also licenses such programming worldwide, and IFC Films is our film distribution business. AMC Networks Broadcasting & Technology, our technical services business, primarily services most of the national programming networks. • International and Other : Includes AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels around the world, and 25/7 Media (formerly Levity), our production services business. See Note 4 relating to the 2021 spin-off of the Levity comedy venues business. Basis of Presentation Principles of Consolidation The consolidated financial statements include the accounts of AMC Networks and its subsidiaries in which a controlling financial interest is maintained or variable interest entities ("VIEs") in which the Company has determined it is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. Investments in business entities in which the Company lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method of accounting. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets and the valuation and recoverability of goodwill and intangible assets. Reclassifications Certain reclassifications were made to the prior period amounts to conform to the current period presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition The Company primarily earns revenue from (i) the distribution of its programming services, through distributors and directly to consumers, and licensing of its programming and other content, (ii) advertising, and (iii) other services. Revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer. The Company’s revenue recognition policies associated with each major source of revenue from contracts with customers are described in Note 3 Revenue Recognition. Technical and Operating Expenses Costs of revenues, including but not limited to programming expenses, primarily consisting of amortization of program rights, such as those for original programming, feature films and licensed series, participation and residual costs, distribution and production related costs and program delivery costs, such as transmission, encryption, hosting and formatting are classified as technical and operating expenses in the consolidated statements of income. Advertising Expenses Advertising costs are charged to expense when incurred and are included in selling, general and administrative expenses in the consolidated statements of income. Advertising costs were $379.0 million, $383.0 million and $246.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the portion of awards that are ultimately expected to vest. The cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award using a straight-line amortization method, except for restricted stock units granted to non-employee directors which vest 100%, and are expensed, at the date of grant. Share-based compensation expenses is included in selling, general and administrative expenses in the consolidated statements of income. Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of most of the Company's international subsidiaries is the local currency. Assets and liabilities, including intercompany balances for which settlement is anticipated in the foreseeable future, are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded as a component of other comprehensive income ("OCI") in the consolidated statements of stockholders' equity. Transactions denominated in currencies other than subsidiaries' functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. The Company recognized foreign currency transaction gains (losses) of $(1.2) million, $12.2 million and $(4.0) million for the years ended December 31, 2022, 2021 and 2020, respectively, which are included in miscellaneous, net in the consolidated statements of income. Cash and Cash Equivalents The Company's cash investments are placed with money market funds and financial institutions that are investment grade as rated by Standard & Poor's and Moody's Investors Service. The Company selects money market funds that predominantly invest in marketable, direct obligations issued or guaranteed by the U.S. government or its agencies, commercial paper, fully collateralized repurchase agreements, certificates of deposit, and time deposits. The Company considers the balance of its investment in funds that hold securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or are at fair value. Accounts Receivable, Trade The Company periodically assesses the adequacy of valuation allowances for uncollectible accounts receivable using a forward looking expected loss model by evaluating the collectability of outstanding receivables and general factors such as length of time individual receivables are past due, historical collection experience, and the economic and competitive environment. As of December 31, 2022 and 2021, the Company had $281.3 million and $293.4 million, respectively, of accounts receivable contractually due in excess of one-year, which are included in other assets in the consolidated balance sheets. Program Rights Rights to programming, including feature films and episodic series, acquired under license agreements are stated at the lower of unamortized cost or fair value. Such licensed rights along with the related obligations are recorded at the contract value when a license agreement is executed, unless there is uncertainty with respect to either cost, acceptability or availability. If such uncertainty exists, those rights and obligations are recorded at the earlier of when the uncertainty is resolved or the license period begins. Costs are amortized to technical and operating expenses on a straight-line or accelerated basis, based on the expected exploitation strategy of the rights, over a period not to exceed the respective license periods. Owned original programming costs are recorded as program rights on the consolidated balance sheet. Program rights that are monetized as a group are amortized based on projected usage, typically resulting in an accelerated amortization pattern. Projected program usage is based on the Company's current expectation of future exhibitions taking into account historical usage of similar content. To a lesser extent, program rights that are predominantly monetized individually are amortized to technical and operating expenses over their estimated useful lives, commencing upon the first airing, based on attributable revenue for airings to date as a percentage of total projected attributable revenue ("ultimate revenue") under the individual-film-forecast-computation method. Projected attributable revenue can change based upon programming market acceptance, levels of distribution and advertising revenue and decisions regarding planned program usage. These calculations require management to make assumptions and to apply judgment regarding revenue and planned usage. Accordingly, the Company periodically reviews revenue estimates and planned usage and revises its assumptions if necessary, which could impact the timing of amortization expense or result in a write-down to fair value. Any capitalized development costs for programs that the Company determines will not be produced are written off at the earlier of the time of abandonment or three years. The Company periodically reviews the programming usefulness of licensed and owned original program rights based on several factors, including expected future revenue generation from airings on the Company's networks and streaming services and other exploitation opportunities, ratings, type and quality of program material, standards and practices, and fitness for exhibition through various forms of distribution. If events or changes in circumstances indicate that the fair value of a film predominantly monetized individually or a film group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost. See Note 6 for further discussion regarding program rights. In the normal course of business, the Company may qualify for tax incentives through eligible spend on productions. These tax incentives generally provide for refundable or transferable tax credits upon meeting established levels of qualified production spending within a participating jurisdiction and may be received prior to or after completion of a production. Production tax incentives are included in prepaid and other current assets or other assets in the consolidated balance sheet with a corresponding reduction to the cost basis of the Company’s programming assets when collection becomes probable, and reduces program rights amortization over the life of the title. Receivables related to tax incentives earned on production spend as of December 31, 2022 were $143.1 million and $104.5 million recorded in Prepaid expenses and other current assets and Other assets, respectively. Investments Investments in equity securities (excluding equity method investments) with readily determinable fair values are accounted for at fair value. The Company applies the measurement alternative to fair value for equity securities without readily determinable fair values, which is to record the investments at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. All gains and losses related to equity securities are recorded in earnings as a component of miscellaneous, net, in the consolidated statements of income. Investments in which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary are equity method investments. Significant influence typically exists if the Company has a 20% to 50% ownership interest in a venture unless persuasive evidence to the contrary exists. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments and expenses incurred on behalf of investees as well as payments from equity method investees such as dividends and distributions are recorded as adjustments to investment balances. The Company applies the cumulative earnings approach for determining the cash flow presentation of cash distributions received from equity method investees. Distributions received are included in the consolidated statements of cash flows as operating activities, unless the cumulative distributions (less distributions received in prior periods that were determined to be returns of investment) exceed the Company's portion of the cumulative equity in the net earnings of the equity method investment, in which case the excess distributions are deemed to be returns of the investment and are classified as investing activities in the consolidated statements of cash flows. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. See Note 7 for further discussion regarding investments. Long-Lived Assets Property and equipment are carried at cost. Equipment under finance leases is recorded at the present value of the total minimum lease payments. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets or, with respect to equipment under finance leases and leasehold improvements, amortized over the shorter of the lease term or the assets' useful lives and reported in depreciation and amortization in the consolidated statements of income. Amortizable intangible assets established in connection with business combinations primarily consist of affiliate and customer relationships, advertiser relationships and trade names. Amortizable intangible assets are amortized on a straight-line basis over their respective estimated useful lives. The Company reviews its long-lived assets (property and equipment, and amortizable intangible assets) for impairment whenever events or circumstances indicate that the carrying amount of an asset group may not be recoverable. If the sum of the expected cash flows, undiscounted and without interest, is less than the carrying amount of the asset group, an impairment loss is recognized as the amount by which the carrying amount of the asset group exceeds its fair value. See Note 9 for further discussion regarding impairment tests of long-lived assets. Goodwill and Indefinite-Lived Intangible Assets Goodwill and identifiable intangible assets that have indefinite useful lives are not amortized, but instead are tested annually for impairment and upon the occurrence of certain events or substantive changes in circumstances. Goodwill The annual goodwill impairment test allows for the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity may choose to perform the qualitative assessment on none, some or all of its reporting units or an entity may bypass the qualitative assessment for any reporting unit and proceed directly to step one of the quantitative impairment test. If it is determined, on the basis of qualitative factors, that the fair value of a reporting unit is, more likely than not, less than its carrying value, the quantitative impairment test is required. The quantitative impairment test calculates any goodwill impairment as the difference between the carrying amount of a reporting unit and its fair value, but not to exceed the carrying amount of goodwill. Indefinite-Lived Intangible Assets Indefinite-lived intangible assets established in connection with business combinations consist of trademarks. The annual indefinite-lived intangible asset impairment test allows for the option to first assess qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If it is determined, on the basis of qualitative factors, that the fair value is, more likely than not, less than its carrying value, the quantitative impairment test is required. The quantitative impairment test consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. See Note 9 for further discussion regarding impairment tests of goodwill and indefinite-lived intangible assets. Deferred Carriage Fees Deferred carriage fees, included in other assets in the consolidated balance sheets, represent amounts principally paid to multichannel video programming distributors to obtain additional subscribers and/or guarantee carriage of certain programming services and are amortized as a reduction of revenue over the period of the related affiliation arrangement (up to 5 years). Derivative Financial Instruments The Company's derivative financial instruments are recorded as either assets or liabilities in the consolidated balance sheet based on their fair values. The Company's embedded derivative financial instruments which are clearly and closely related to the host contracts are not accounted for on a stand-alone basis. Changes in the fair values are reported in earnings or other comprehensive income depending on the use of the derivative and whether it qualifies for hedge accounting. Derivative instruments are designated and accounted for as either a hedge of a recognized asset or liability (fair value hedge) or a hedge of a forecasted transaction (cash flow hedge). For derivatives not designated as hedges, changes in fair values are recognized in earnings and included in interest expense, for interest rate swap contracts and miscellaneous, net, for foreign currency and other derivative contracts. For derivatives designated as effective cash flow hedges, changes in fair values are recognized in other comprehensive income (loss). Changes in fair values related to fair value hedges as well as the ineffective portion of cash flow hedges are recognized in earnings. Changes in the fair value of the underlying hedged item of a fair value hedge are also recognized in earnings. See Note 13 for a further discussion of the Company's derivative financial instruments. Income Taxes The Company's provision for income taxes is based on current period income, changes in deferred tax assets and liabilities and estimates with regard to the liability for unrecognized tax benefits resulting from uncertain tax positions. Deferred tax assets are evaluated quarterly for expected future realization and reduced by a valuation allowance to the extent management believes it is more likely than not that a portion will not be realized. The Company provides deferred taxes for the outside basis difference for its investment in partnerships and uses the deferral method to recognize the income tax benefit from investment tax credits. Global intangible low taxed income (“GILTI”) tax is treated as a period expense. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the contingency can be reasonably estimated. See Note 16 for further discussion regarding commitments and contingencies. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. Cash is invested in money market funds and bank time deposits. The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company's emphasis is primarily on safety of principal and liquidity and secondarily on maximizing the yield on its investments. As of December 31, 2022, two customers accounted for 14% and 12%, respectively, of accounts receivable (short and long-term). As of December 31, 2021, two customers accounted for 14% and 13%, respectively, of accounts receivable (short and long-term). Redeemable Noncontrolling Interests Noncontrolling interest with redemption features, such as put options, that are not solely within the Company's control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are considered to be temporary equity and are reported in the mezzanine section between total liabilities and stockholders' equity in the Company's consolidated balance sheet at the greater of their initial carrying amount, increased or decreased for contributions, distributions and the noncontrolling interest's share of net income or loss, or redemption value. Net Income per Share The consolidated statements of income present basic and diluted net income per share ("EPS"). Basic EPS is based upon net income divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the dilutive effects of AMC Networks outstanding equity-based awards. The following is a reconciliation between basic and diluted weighted average shares outstanding: (In thousands) Years Ended December 31, 2022 2021 2020 Basic weighted average shares outstanding 43,135 42,361 51,016 Effect of dilution: Stock options — 3 — Restricted stock units 596 1,075 717 Diluted weighted average shares outstanding 43,731 43,439 51,733 As of December 31, 2022, 2021 and 2020, 0.8 million, 0.4 million, and 0.3 million, respectively, of restricted stock units and stock options have been excluded from diluted weighted average common shares outstanding, as their impact would have been anti-dilutive. Common Stock of AMC Networks Each holder of AMC Networks Class A Common Stock has one vote per share while holders of AMC Networks Class B Common Stock have ten votes per share. AMC Networks Class B shares can be converted to AMC Networks Class A Common Stock at any time with a conversion ratio of one AMC Networks Class A common share for one AMC Networks Class B common share. The AMC Networks Class A stockholders are entitled to elect 25% of the Company's Board of Directors. AMC Networks Class B stockholders have the right to elect the remaining members of the Company's Board of Directors. In addition, AMC Networks Class B stockholders are parties to an agreement which has the effect of causing the voting power of these AMC Networks Class B stockholders to be cast as a block. Stock Repurchase Program The Company's Board of Directors previously authorized a program to repurchase up to $1.5 billion of its outstanding shares of common stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established closing date and may be suspended or discontinued at any time. For the years ended December 31, 2022 and 2021, the Company did not repurchase any shares of its Class A common stock. As of December 31, 2022, the Company had $135.3 million available for repurchase under the Stock Repurchase Program. On September 16, 2020, the Company commenced a modified "Dutch auction" tender offer (the "Tender Offer") to purchase up to $250 million in value of shares of its Class A Common Stock, plus up to an additional 2% of the outstanding shares of Class A Common Stock, at a price not greater than $26.50 nor less than $22.50 per share. The Tender Offer expired on October 14, 2020. On October 21, 2020, the Company accepted for purchase 10.8 million shares of its Class A Common Stock, at a price of $23.20 per share, for an aggregate cost of $250.6 million. The cost of these shares, and the fees relating to the Tender Offer, are classified in Treasury stock in the consolidated balance sheet. The following table summarizes common stock share activity for all years presented: Shares Outstanding (In thousands) Class A Common Stock Class B Common Stock Balance at December 31, 2019 44,078 11,484 Share repurchases (14,785) — Employee and non-employee director stock transactions* 682 — Balance at December 31, 2020 29,975 11,484 Employee and non-employee director stock transactions* 917 — Balance at December 31, 2021 30,892 11,484 Employee and non-employee director stock transactions* 633 — Balance at December 31, 2022 31,525 11,484 *Reflects common stock activity in connection with restricted stock units and stock options granted to employees, as well as in connection with the fulfillment of employees' statutory tax withholding obligations for applicable income and other employment taxes and forfeited employee restricted stock units. Recently Adopted Accounting Standards In November 2021, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , requiring annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. The new guidance requires the disclosure of the nature of the transactions, the accounting policies used to account for the transactions, and the effect of the transactions on the financial statements. The Company adopted the new guidance prospectively for the year ended December 31, 2022, which impacts disclosures of tax incentives related to the production of content. Effective January 1, 2021, the Company adopted FASB ASU 2019-12, Simplifying the Accounting for Income Taxes . ASU 2019-12 removes certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740 - Income Taxes. The adoption of the standard did not have a material effect on the Company's consolidated financial statements. Effective January 1, 2020, the Company adopted FASB ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which changed the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking "expected loss" model that would generally result in the earlier recognition of allowances for losses. The Company adopted the standard using the modified retrospective approach and recorded a decrease to opening retained earnings of $2.0 million, after taxes, for the cumulative-effect of the adoption. Effective January 1, 2020, the Company adopted FASB ASU No. 2018-13, Fair Value Measurement (Topic 820) . The standard changed the disclosure requirements related to transfers between Level I and II assets, as well as several aspects surrounding the valuation process and unrealized gains and losses related to Level III assets. The adoption of the standard did not have any effect on the Company's consolidated financial statements. Effective January 1, 2020, the Company adopted FASB ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The standard amended prior guidance to align the accounting for costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs associated with developing or obtaining internal-use software. Capitalized implementation costs must be expensed over the term of the hosting arrangement and presented in the same line item in the income statement as the fees associated with the hosting element (service) of the arrangement. The adoption of the standard did not have a material effect on the Company's consolidated financial statements. Effective January 1, 2020, the Company adopted FASB ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The standard aligns the accounting for production costs of episodic television series with the accounting for production costs of films. In addition, the standard modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements in ASC Topic 926-20 and the impairment, presentation and disclosure requirements in ASC 920-350. The Company adopted the standard on a prospective basis. See Note 6 for further information. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer ("transaction price"). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available. Amounts collected on behalf of others (including taxes), where the Company is an agent, are excluded from revenue. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying a practical expedient in the guidance, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price considering available information such as market conditions and internal pricing guidelines related to the performance obligations. The Company primarily earns revenue from (i) the distribution of its programming services, through distributors and directly to consumers, and licensing of its programming and other content, (ii) advertising, and (iii) other services. The Company’s revenue recognition policies summarizing the nature, amount, timing and uncertainty associated with each major source of revenue from contracts with customers are described below. Distribution The majority of the Company’s distribution revenues relate to sales-based and usage-based royalties which are recognized on the later of (i) when the subsequent sale or usage occurs and (ii) satisfaction or partial satisfaction of the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated to. Occasionally, the Company incurs costs to obtain a distribution contract and these costs are amortized over the period of the related distribution contract as a reduction of revenue. Subscription fee revenue: Subscription fees are earned from cable and other multichannel video programming distribution platforms, including direct broadcast satellite ("DBS"), platforms operated by telecommunications providers and virtual multichannel video programming distributors (collectively "distributors"), for the rights to use the Company's network programming under multi-year contracts, commonly referred to as "affiliation agreements." The Company's performance obligation under affiliation agreements is a license of functional intellectual property that is satisfied as the Company provides its programming over the term of the agreement. The transaction price is represented by subscription fees that are generally based upon (i) contractual rates applied to the number of the distributor's subscribers who receive or can receive our programming ("rate-per-subscriber"), or (ii) fixed contractual monthly fees ("fixed fee"). For rate-per-subscriber agreements, the Company applies the sales-based or usage-based royalty guidance, and accordingly, recognizes revenue in the period of the distributor’s usage, based on the subscription fee earned during the period. Fixed fee affiliation agreements are generally billed in monthly installments, and such amounts may vary over the term of the contract. In cases where the invoice amount corresponds directly with the value to the affiliate of the performance to-date, the Company recognizes revenue based on the invoiced amount. In cases where changes in fees during the contract term do not correspond directly to the value of the performance to-date (for example, if the fees vary over the contract term due to a significant financing or credit risk component), the Company recognizes the total amount of fixed transaction price over the contract period using a time-based (e.g., straight-line) measure of progress. Certain of the Company’s fixed fee affiliation agreements contain guaranteed minimum fees that are recoupable during the term of the agreement, and variable fees based on rates-per-subscriber after the guaranteed minimum is recouped. The Company recognizes revenue for the fixed consideration over the minimum guarantee period and recognizes variable fees only when cumulative consideration exceeds the minimum guarantee. The Company's performance obligation in connection with its streaming services is a license of functional intellectual property that is satisfied as the Company provides its programming over the term of the agreement. Subscription fees for the Company's streaming services are typically based on a per subscriber fee and are generally paid by distributors and consumers on a monthly basis. The Company applies the sales-based or usage-based royalty guidance, and accordingly, recognizes revenue in the period of usage, based on the subscription fee earned during the period. Content licensing revenue: The Company licenses its original programming content to certain distributors, including under streaming, pay-per-view ("PPV") and electronic sell-through ("EST") arrangements. For streaming licensing arrangements, our performance obligation is a license to functional intellectual property that provides the distributor the right to use our programming as it exists at a point in time. The satisfaction of the Company’s performance obligation, and related recognition of revenue, occurs at the later of the beginning of the license period, or when we provide the programming to the distributor. The Company’s performance obligation in a content license arrangement pertains to each distinct unit of content, which is generally each season of an episodic series or a film. The Company typically delivers all episodes of a season for a series concurrently and the licensee’s rights to exploit the content is the same across all of the episodes. The Company adjusts the transaction price for the time value of money in cases where license fees are paid over several years. A contract asset is recognized for the difference between the revenue recognized and the amount we are permitted to invoice. For PPV and EST license fee arrangements, the Company applies the sales-based or usage-based royalty guidance and recognizes revenue in the period of end-customer purchases, based on the fees earned during the period. The Company also licenses trademarks, logos, brands, derivative character copyrights, etc. under multi-year arrangements. Under these arrangements, the Company may receive a non-refundable minimum guarantee that is recoupable against a volume-based royalty throughout the term of the agreement. The performance obligation is a license of symbolic intellectual property that provides the customer with a right to access the intellectual property. The Company adjusts the transaction price for the time value of money in cases where license fees are paid over several years. The Company recognizes revenue for the minimum guarantee on a straight-line basis over the term of the agreement, and recognizes variable fees only when cumulative consideration exceeds the minimum guarantee. The Company’s payment terms vary by the type and location of customer. Generally, payment terms are 30-45 days after revenue is earned. In certain limited circumstances, agreements with customers have payment terms in excess of one-year after satisfaction of the performance obligation. Advertising The Company generates revenues from the sale of advertising time on its networks. In such arrangements, the Company generally promises to air a certain number of commercials (spots) and to generate guaranteed viewer ratings for an audience demographic (impressions) over a period that generally does not exceed one year. The promise to deliver impressions by airing spots represents the Company’s performance obligation. Advertising revenues are recognized as commercials are aired, to the extent that guaranteed viewer ratings are achieved. A contract liability is recognized to the extent the guaranteed viewer ratings are not met, and is subsequently recognized as revenue either when the Company provides the required additional advertising or the guarantee obligation contractually expires. Generally, payment terms are 30 days after revenue is earned. Other The Company earns revenue from production and transmission services. Such services are recognized as revenue as the services are performed. Transaction Price Allocated to Future Performance Obligations The guidance requires disclosure of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of December 31, 2022. However, the guidance does not apply to sales-based or usage-based royalty arrangements and also provides certain practical expedients that allow companies to omit this disclosure requirement for (i) contracts with an original expected length of one year or less, (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed and (iii) variable consideration related to a wholly unsatisfied performance obligation. As of December 31, 2022, other than contracts for which the Company has applied the practical expedients, the aggregate amount of transaction price allocated to remaining performance obligations was not material to our consolidated revenues. Contract Balances from Contracts with Customers The timing of revenue recognition, billings and cash collections results in billed receivables, contract assets and contract liabilities in the consolidated balance sheet. For certain types of contracts with customers, the Company may recognize revenue in advance of the contractual right to invoice the customer, resulting in an amount recorded to contract assets. Once the Company has an unconditional right to consideration under a contract, the contract assets are reclassified to account receivables. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when, or as, control of the products or services is transferred to the customer and all revenue recognition criteria have been met. The primary source of the Company’s contract liabilities relates to advertising sales arrangements and content licensing arrangements, including payments received in connection with an AMC Studios produced series for a third party. As noted above, the Company’s programming networks generally guarantee viewer ratings for its programming. If these guaranteed viewer ratings are not met, the Company is required to provide additional advertising units to the advertiser. For these types of arrangements, a portion of the related revenue is deferred if the guaranteed ratings are not met, representing a contract liability, and is subsequently recognized either when the Company provides the required additional advertising time or the guarantee obligation contractually expires. In certain content licensing arrangements, payment may be received in advance of a distributor's ability to exhibit a program. Such payments are recorded as a contract liability and subsequently recognized when the program becomes available for exhibition. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers. (In thousands) December 31, 2022 December 31, 2021 Balances from contracts with customers: Accounts receivable (including long-term receivables, within Other assets) $ 1,003,505 $ 1,106,225 Contract assets, short-term (included in Prepaid expenses and other current assets) 48,594 69,351 Contract assets, long-term (included in Other assets) — 29,323 Contract liabilities, short-term (Deferred revenue) 134,883 167,071 Contract liabilities, long-term (Deferred revenue included in Other liabilities) 683 31,832 (a) Revenue recognized for the twelve months ended December 31, 2022, 2021, and 2020, relating to the contract liabilities at December 31, 2021, 2020, and 2019 was $185.6 million, $61.2 million, and $47.2 million, respectively. |
Impairment and Other Charges
Impairment and Other Charges | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Income Statement Elements [Abstract] | |
Impairment and Other Charges | Impairment and Other ChargesIn December 2022, in connection with the preparation of its fourth quarter financial information, the Company performed its annual goodwill impairment test and concluded that the estimated fair value of the AMCNI reporting unit declined to less than its carrying amount. The decrease in the estimated fair value was in response to current and expected trends across the International television broadcasting markets, as well as a decrease in the valuation multiples used to estimate the fair value using the market approach. As a result, the Company recognized an impairment charge of $40.7 million, reflecting a partial write-down of the goodwill associated with the AMCNI reporting unit. On July 16, 2021, the Company entered into a settlement agreement (the “Settlement Agreement”) with Frank Darabont, Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (together, the "Plaintiffs") in actions brought in connection with Frank Darabont’s rendering services as a writer, director and producer of the television series entitled The Walking Dead . The consolidated cases were initially brought in 2013 and 2018 and the trial of the consolidated cases was scheduled to commence on April 4, 2022. The Settlement Agreement provided for a cash payment of $200 million (the “Settlement Payment”) to the Plaintiffs and future revenue sharing related to certain future streaming exhibition of The Walking Dead and Fear The Walking Dead . With regard to the Settlement Payment, the Company recorded a charge of $143.0 million during the second quarter of 2021, included in Impairment and other charges, in consideration for the extinguishment of Plaintiffs’ rights to any compensation in connection with The Walking Dead and any related programs and the dismissal of the actions with prejudice, which amount is net of $57.0 million of ordinary c ourse accrued participations. In March 2021, the Company completed a spin-off of the live comedy venue and talent management businesses ("LiveCo") of Levity Entertainment Group, LLC. In connection with the transaction, the Company effectively exchanged all of its rights and interests in LiveCo for the release of the Company's obligations, principally related to leases. As a result of this divestiture, the Company recognized a loss on the disposal of $16.6 million reflecting the net assets transferred (consisting of property and equipment, lease right-of-use assets and intangibles, partially offset by lease and other obligations), which is included in Impairment and other charges In 2020, as a result of the continuing impact of the COVID-19 pandemic, the Company qualitatively assessed whether it was more likely than not that goodwill and long-lived assets were impaired as of June 30, 2020. As a result of that assessment, the Company incurred impairment charges of $122.2 million, consisting of $25.1 million related to goodwill impairment and $97.1 million primarily related to certain identifiable intangible assets, as well as property and equipment, and operating lease right-of-use assets, all of which were associated with the AMCNI reporting unit. |
Restructuring and Other Related
Restructuring and Other Related Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring and Other Related Charges On November 28, 2022, the Company commenced a restructuring plan (the “Plan”) designed to achieve significant cost reductions in light of “cord cutting” and the related impacts being felt across the media industry as well as the broader economic outlook. The Plan encompasses initiatives that include, among other things, strategic programming assessments and organizational restructuring costs . The Plan is intended to improve the organizational design of the Company through the elimination of certain roles and centralization of certain functional areas of the Company. The programming assessments pertain to a broad mix of owned and licensed content, including legacy television series and films that will no longer be in active rotation on the Company’s linear or streaming platforms. As a result of the Plan, the Company recorded r estructuring and other related charges of $449.0 million for the year ended December 31, 2022, consisting of content impairments of $403.8 million and severance and other personnel costs of $45.2 million. The Company expects to incur additional restructuring and other related charges in 2023. Restructuring and other related charges of $10.4 million for the year ended December 31, 2021 consisted of (i) $6.1 million at AMCNI related to severance costs and the termination of distribution in certain international territories and (ii) $4.3 million of severance costs associated with the restructuring plan announced in November 2020. The Company recorded restructuring and other related charges of $35.1 million for the year ended December 31, 2020. On November 18, 2020, the Company commenced a restructuring plan (the “2020 Plan”) designed to streamline the Company’s operations through a reduction of its domestic workforce. The 2020 Plan is intended to improve the organizational design of the Company through the elimination of certain roles and centralization of certain functional areas of the Company. R estructuring and other related charges associated with the 2020 Plan, recorded in 2020, were primarily for severance and other personnel costs of $21.2 million, of which $15.8 million was attributable to the Domestic Operations segment, $0.2 million was attributable to the International and Other segment, and $5.2 million was attributable to Corporate / Inter-segment Eliminations. Additional restructuring and other related charges for the year ended December 31, 2020 were $13.9 million, which related to costs associated with the termination of distribution in certain territories, as well as severance and other personnel related costs associated with previously disclosed restructuring activities. The following table summarizes the restructuring and other related charges recognized by operating segment: Years Ended December 31, (In thousands) 2022 2021 2020 Domestic Operations $ 423,205 $ 2,516 $ 22,946 International and Other 2,854 6,083 6,410 Corporate / Inter-segment Eliminations 22,907 1,779 5,712 Total restructuring and other related charges $ 448,966 $ 10,378 $ 35,068 The following table summarizes the restructuring and other related charges recognized for the three years: Years Ended December 31, (In thousands) 2022 2021 2020 Restructuring charges $ 45,212 $ 10,378 $ 35,068 Content impairments 403,754 — — Total restructuring and other related charges $ 448,966 $ 10,378 $ 35,068 The following table summarizes the accrued restructuring and other related costs: (In thousands) Severance and Employee-Related Costs Content Impairments and Other Exit Costs Total Balance at December 31, 2020 $ 25,571 $ 31 $ 25,602 Charges 5,921 4,457 10,378 Cash payments (31,245) (256) (31,501) Non-cash adjustments — (4,201) (4,201) Currency translation 64 (2) 62 Balance at December 31, 2021 311 29 340 Charges 45,212 403,754 448,966 Cash payments (311) (13) (324) Non-cash adjustments (7,698) (329,046) (336,744) Currency translation (364) — (364) Balance at December 31, 2022 $ 37,150 $ 74,724 $ 111,874 Accrued restructuring and other related costs of $108.0 million and $3.9 million are included in Accrued liabilities and Other liabilities, respectively, in the consolidated balance sheet at December 31, 2022. Accrued restructuring and other related costs of $0.3 million are included in Accrued liabilities in the consolidated balance sheet at December 31, 2021. |
Program Rights and Obligations
Program Rights and Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Film, Disclosures [Abstract] | |
Programs Rights and Obligations | Program Rights and Obligations Program Rights Effective January 1, 2020, the Company adopted FASB ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials . The guidance impacts the Company as follows: • Allows for the classification of acquired/licensed program rights as long-term assets. Previously, the Company reported a portion of these rights in current assets. Advances for live program rights made prior to the live event and acquired/licensed program rights with license terms of less than one year continue to be reported in current assets. • Aligns the capitalization of production costs for episodic television programs with the capitalization of production costs for theatrical content. Previously, theatrical content production costs could be fully capitalized while episodic television production costs were generally limited to the amount of contracted revenues. • Introduces the concept of “predominant monetization strategy” to classify capitalized program rights for purposes of amortization and impairment as follows: ◦ Individual program rights - programming value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g., theatrical revenues, significant in-show advertising on the Company’s programming networks or specific content licensing revenues). ◦ Group program rights - programming value is predominantly derived from third-party revenues that are not directly attributable to a specific film or television title (e.g., library of program rights for purpose of the Company’s programming networks or subscription revenue for streaming services). The determination of the predominant monetization strategy is made at commencement of production and is based on the means by which the Company derives third-party revenues from use of the programming. The classification of program rights as individual or group only changes if there is a significant change to the title’s monetization strategy relative to its initial assessment. Total capitalized produced and licensed content by predominant monetization strategy is as follows: December 31, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 215,496 $ 322,248 $ 537,744 In-production and in-development 45,098 294,086 339,184 Total owned original program rights, net $ 260,594 $ 616,334 $ 876,928 Licensed program rights, net: Licensed film and acquired series $ 3,092 $ 642,768 $ 645,860 Licensed originals 5,373 171,418 176,791 Advances and content versioning costs — 74,167 74,167 Total licensed program rights, net 8,465 888,353 896,818 Program rights, net $ 269,059 $ 1,504,687 $ 1,773,746 Current portion of program rights, net $ 10,807 Program rights, net (long-term) 1,762,939 $ 1,773,746 December 31, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 185,228 $ 127,470 $ 312,698 In-production and in-development 161,881 264,927 426,808 Total owned original program rights, net $ 347,109 $ 392,397 $ 739,506 Licensed program rights, net: Licensed film and acquired series $ 7,005 $ 620,935 $ 627,940 Licensed originals 61,923 148,063 209,986 Advances and content versioning costs 57,278 107,196 164,474 Total licensed program rights, net 126,206 876,194 1,002,400 Program rights, net $ 473,315 $ 1,268,591 $ 1,741,906 Current portion of program rights, net $ 10,068 Program rights, net (long-term) 1,731,838 $ 1,741,906 Amortization, including write-offs, of owned and licensed program rights is as follows: Year Ended December 31, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Included in Technical and operating: Owned original program rights $ 279,910 $ 182,695 $ 462,605 Licensed program rights 37,935 507,930 545,865 $ 317,845 $ 690,625 $ 1,008,470 Included in Restructuring and other related charges: Owned original program rights $ 192,749 $ 24,914 $ 217,663 Licensed program rights 110,830 75,261 186,091 $ 303,579 $ 100,175 $ 403,754 Year Ended December 31, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 307,676 $ 53,547 $ 361,223 Licensed program rights 73,648 474,468 548,116 Program rights amortization $ 381,324 $ 528,015 $ 909,339 The following table presents the expected amortization over each of the next three years of completed program rights on the consolidated balance sheet as of December 31, 2022: (In thousands) 2023 2024 2025 Owned original program rights: Predominantly Monetized Individually $ 88,280 $ 56,156 $ 36,587 Predominantly Monetized as a Group 149,888 90,913 53,964 Licensed program rights: Predominantly Monetized Individually $ 4,483 $ 2,279 $ 1,493 Predominantly Monetized as a Group 395,510 257,667 130,785 There was $403.8 million of program write-offs recorded to restructuring and other related charges in connection with the Company’s strategic programming assessments. Refer to Note 5 to the consolidated financial statements for additional information. Program rights write-offs of $12.8 million and $108.3 million were included in technical and operating expense for the years ended December 31, 2021 and 2020, respectively. Program Rights Obligations Amounts payable subsequent to December 31, 2022 related to program rights obligations included in the consolidated balance sheet are as follows: (In thousands) Years Ending December 31, 2023 $ 374,115 2024 128,115 2025 49,921 2026 13,058 2027 5,790 Thereafter 3,985 $ 574,984 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Investments | Investments The Company holds several investments in and loans to non-consolidated entities which are included in Other assets in the condensed consolidated balance sheet. Equity Method Investments Equity method investments were $79.6 million and $93.7 million at December 31, 2022 and 2021, respectively. In February 2021, the Company invested $27.4 million for an interest in a Toronto-based production company and studio, which is accounted for as an equity method investment. In June 2021, the Company paid $23.8 million to acquire the remaining 50% interest in an equity method investment in which it previously owned a 50% interest and began consolidating that business from June 2021. In connection with the acquisition, the Company recorded a gain of $12.3 million, included in miscellaneous, net in the consolidated income statement related to the step-up to fair value of its previously held interest. Marketable Equity Securities The Company classifies publicly traded investments with readily determinable fair values that are not accounted for under the equity method as marketable equity securities. Marketable equity securities are recorded at cost and adjusted to fair value at each reporting period. The changes in fair value between measurement dates are recorded in miscellaneous, net in the consolidated statements of income. There were no investments in marketable equity securities at December 31, 2022 and $5.8 million at December 31, 2021. In April 2022, the Company sold its interest in a marketable equity security for $9.9 million, resulting in a $4.1 million gain recorded during the period. In January 2021, the Company sold the remaining portion of one of its marketable securities with a carrying value of $51.0 million as of December 31, 2020, resulting in a realized loss of $5.4 million included in miscellaneous, net in the consolidated statement of income. In December 2020, the Company sold a portion of one of its marketable securities, resulting in a realized gain of $37.4 million, included in miscellaneous, net in the consolidated statement of income. For the years ended December 31, 2022, 2021 , and 2020, realized and unrealized gains (losses) on marketable equity securities were $4.1 million, $(11.1) million and $82.8 million, respectively, included in miscellaneous, net in the consolidated statement of income. Non-marketable Equity Securities The Company classifies investments without readily determinable fair values that are not accounted for under the equity method as non-marketable equity securities. The accounting guidance requires non-marketable equity securities to be recorded at cost and adjusted to fair value at each reporting period. However, the guidance allows for a measurement alternative, which is to record the investments at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. The Company applies this measurement alternative to its non-marketable equity securities. When an observable event occurs, the Company estimates the fair values of its non-marketable equity securities based on Level 2 inputs that are derived from observable price changes of similar securities adjusted for insignificant differences in rights and obligations. The changes in value are recorded in miscellaneous, net in the consolidated statements of income. Investments in non-marketable equity securities were $42.7 million at December 31, 2022 and $37.7 million at December 31, 2021. During the third quarter of 2022, the Company made a $5.0 million investment in a targeted streaming service. The Company recognized impairment charges of $20.0 million for the year ended December 31, 2020, related to the partial write-down of certain non-marketable equity securities, included in miscellaneous, net in the consolidated statements of income. Additionally, in September 2020, an observable price change occurred with respect to one of the Company's non-marketable equity securities, resulting in an unrealized gain of $14.9 million, included in miscellaneous, net in the condensed consolidated statement of income. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment (including equipment under finance leases) consists of the following: (In thousands) December 31, Estimated Useful Lives 2022 2021 Program, service and test equipment $ 314,234 $ 279,067 2 to 5 years Satellite equipment 40,051 41,134 Term of lease Furniture and fixtures 12,490 13,933 3 to 8 years Transmission equipment 30,169 30,925 5 years Leasehold improvements 149,996 146,865 Term of lease Property and equipment 546,940 511,924 Accumulated depreciation and amortization (344,906) (286,133) Property and equipment, net $ 202,034 $ 225,791 Depreciation and amortization expenses on property and equipment (including equipment under finance leases) amounted to $65.8 million, $54.8 million and $62.4 million, for the years ended December 31, 2022, 2021 and 2020, respectively. At December 31, 2022 and 2021, the gross amount of equipment and related accumulated amortization recorded under finance leases were as follows: (In thousands) December 31, 2022 2021 Satellite equipment $ 40,051 $ 41,134 Less accumulated amortization (29,069) (29,054) $ 10,982 $ 12,080 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets The carrying amount of goodwill, by operating segment is as follows: (In thousands) Domestic Operations International and Other Total December 31, 2020 $ 333,502 $ 352,905 $ 686,407 Goodwill written off related to spin-off of a business unit — (476) (476) Additions 21,312 11,902 33,214 Amortization of "second component" goodwill (1,344) — (1,344) Foreign currency translation — (8,457) (8,457) December 31, 2021 353,470 355,874 709,344 Purchase accounting adjustments (2,834) — (2,834) Impairment charge — (40,717) (40,717) Amortization of "second component" goodwill (1,344) — (1,344) Foreign currency translation — (21,030) (21,030) December 31, 2022 $ 349,292 $ 294,127 $ 643,419 As of December 31, 2022 and 2021, accumulated impairment charges totaled $163.8 million and $123.1 million, respectively. The purchase accounting adjustments of $2.8 million to the carrying amount of goodwill in Domestic Operations in 2022 relate to the December 2021 acquisition of Sentai Holdings, a global supplier of anime content, including its anime-focused HIDIVE subscription streaming service. The annual reduction of $1.3 million in the carrying amount of goodwill for the Domestic Operations segment is due to the realization of a tax benefit for the amortization of "second component" goodwill at SundanceTV. Second component goodwill is the amount of tax deductible goodwill in excess of goodwill for financial reporting purposes. In accordance with the authoritative guidance at the time of the SundanceTV acquisition, the tax benefits associated with this excess are applied to first reduce the amount of goodwill, and then other intangible assets for financial reporting purposes, if and when such tax benefits are realized in the Company's tax returns. The addition of $21.3 million in the carrying amount of goodwill in Domestic Operations in 2021 relates to the acquisition of Sentai Holdings. The addition of $11.9 million in the carrying amount of goodwill in International and Other in 2021 relates to the acquisition of the remaining 50% interest in an equity method investment in which the Company previously owned a 50% interest. Impairment Test of Goodwill Goodwill Goodwill is not amortized, but instead is tested for impairment at the reporting unit level annually as of December 1, or more frequently upon the occurrence of certain events or substantive changes in circumstances. As of December 1, 2022, the Company performed a quantitative assessment for all of its reporting units. The fair values were determined using a combination of an income approach, using a discounted cash flow model (DCF), and a market comparables approach. The DCF model includes significant assumptions about revenue growth rates, long-term growth rates and enterprise specific discount rates. Additionally, the market comparables approach is determined using guideline company valuation multiples. Given the uncertainty in determining assumptions underlying the DCF approach, actual results may differ from those used in the valuation s. Based on the valuations performed, in response to current and expected trends across the International television broadcasting markets, as well as a decrease in the valuation multiples used to estimate the fair value using the market approach, the fair value of the Company's AMCNI reporting unit declined to less than its carrying amount. As a result, the Company recognized an impairment charge of $40.7 million related to the AMCNI reporting unit, included in impairment and other charges in the consolidated statement of income. No impairment charges were required for any of the Company's other reporting units. In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred which would require an interim impairment test. As a result of the continuing impact of the COVID-19 pandemic in 2020, the Company qualitatively assessed whether it was more likely than not that goodwill and long-lived assets were impaired as of June 30, 2020. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of its reporting units. Further, the Company assessed the current forecasts (including significant assumptions about revenue growth rates, long-term growth rates and enterprise specific discount rates) and the amount of excess fair value over carrying value for each of its reporting units in the 2019 impairment test. In connection with the preparation of the second quarter 2020 financial information, the Company determined that a triggering event had occurred with respect to its AMCNI reporting unit, which required an interim impairment test to be performed as of June 30, 2020. As such, the Company performed a quantitative assessment for its AMCNI reporting unit. Based on the valuations performed, in response to the then current and expected trends across the International television broadcasting markets, the fair value of the Company's AMCNI reporting unit declined below its carrying amount. As a result, in June 2020, the Company recognized an impairment charge of $25.1 million related to the AMCNI reporting unit, included in impairment and other charges in the consolidated statement of income. The determination of fair value of the Company's reporting units represents a Level 3 fair value measurement in the fair value hierarchy due to its use of internal projections and unobservable measurement inputs. Changes in significant judgments and estimates could significantly impact the concluded fair value of the reporting unit. Changes to assumptions that would decrease the fair value of the reporting unit would result in corresponding increases to the impairment of goodwill at the reporting unit. The following table summarizes information relating to the Company's identifiable intangible assets: (In thousands) December 31, 2022 Estimated Useful Lives Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 634,000 $ (373,240) $ 260,760 6 to 25 years Advertiser relationships 46,282 (34,443) 11,839 11 years Trade names and other amortizable intangible assets 105,338 (43,161) 62,177 3 to 20 years Total amortizable intangible assets 785,620 (450,844) 334,776 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 805,520 $ (450,844) $ 354,676 (In thousands) December 31, 2021 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 649,543 $ (354,673) $ 294,870 Advertiser relationships 46,282 (30,235) 16,047 Trade names and other amortizable intangible assets 111,151 (42,534) 68,617 Total amortizable intangible assets 806,976 (427,442) 379,534 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 826,876 $ (427,442) $ 399,434 Aggregate amortization expense for amortizable intangible assets for the years ended December 31, 2022, 2021 and 2020 was $41.5 million, $39.1 million and $42.2 million, respectively. Estimated aggregate amortization expense for intangible assets subject to amortization for each of the following five years is: (In thousands) Years Ending December 31, 2023 $ 41,487 2024 41,416 2025 39,697 2026 35,342 2027 31,184 Impairment Test of Long-Lived Assets In June 2020, given the then continuing and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact, the Company revised its outlook for the AMCNI business, resulting in lower expected future cash flows. As a result, the Company determined that sufficient indicators of potential impairment of long-lived assets existed and the Company performed a recoverability test of the long-lived asset groups within the AMCNI business. Based on the recoverability tests performed, the Company determined that certain long-lived assets were not recoverable and recognized an impairment charge of $97.1 million related primarily to certain identifiable intangible assets, as well as property and equipment, and operating lease right-of-use assets, which is included in impairment and other charges in the consolidated statement of income. Fair values used to determine the impairment charges were determined using an income approach, specifically a discounted cash flow model (DCF). The DCF model includes significant assumptions about revenue growth rates, long-term growth rates and enterprise specific discount rates. Given the uncertainty in determining assumptions underlying the DCF approach, actual results may differ from those used in the valuations. No impairment charges for long-lived assets were required in 2021 or 2022. Impairment Test of Identifiable Indefinite-Lived Int angible Assets As of December 1, 2022, the Company performed a quantitative assessment for its indefinite-lived intangible assets. Based on the annual impairment test performed, no impairment charge was re quired. The Company's indefinite-lived intangible assets relate to SundanceTV trademarks, which were valued using a relief-from-royalty method in which the expected benefits are valued by discounting estimated royalty revenue relating to projected revenues covered by the trademarks. Significant judgments inherent in estimating the fair value of indefinite-lived intangible assets include the selection of appropriate discount and royalty rates, estimating the amount and timing of estimated future revenues and identification of appropriate continuing growth rate assumptions. The discount rates used in the analysis are intended to reflect the risk inherent in the projected future cash flows generated by the respective intangible assets. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: (In thousands) December 31, 2022 December 31, 2021 Employee related costs $ 97,362 $ 128,388 Participations and residuals 138,384 133,988 Interest 37,105 36,922 Restructuring and other related charges 107,998 340 Other accrued expenses 38,216 40,769 Total accrued liabilities $ 419,065 $ 340,407 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The Company's long-term debt consists of: (In thousands) December 31, 2022 December 31, 2021 Senior Secured Credit Facility: Term Loan A Facility $ 641,250 $ 675,000 Senior Notes: 5.00% Notes due April 2024 400,000 400,000 4.75% Notes due August 2025 800,000 800,000 4.25% Notes due February 2029 1,000,000 1,000,000 Total long-term debt 2,841,250 2,875,000 Unamortized discount (18,718) (23,167) Unamortized deferred financing costs (10,079) (13,363) Long-term debt, net 2,812,453 2,838,470 Current portion of long-term debt 33,750 33,750 Noncurrent portion of long-term debt $ 2,778,703 $ 2,804,720 Senior Secured Credit Facility On February 8, 2021, AMC Networks entered into Amendment No. 1 (“Amendment No. 1”) to the Second Amended and Restated Credit Agreement, dated as of July 28, 2017 (as amended by Amendment No. 1, the "Credit Agreement"), among AMC Networks and its subsidiary, AMC Network Entertainment LLC, as the Initial Borrowers, certain of AMC Networks' subsidiaries, as restricted subsidiaries, JPMorgan Chase Bank, N.A., as Administrative Agent, Collateral Agent and L/C Issuer, Bank of America, as an L/C Issuer, and the lenders party thereto. Amendment No. 1 extended the maturity dates of the $675 million Term Loan A Facility and $500 million Revolving Facility (each as defined below) under the Credit Agreement to February 8, 2026, and made certain other amendments to the covenants and other provisions of the Credit Agreement. The Credit Agreement provides the Initial Borrowers with senior secured credit facilities consisting of (a) a $675 million Term Loan A (the "Term Loan A Facility") and (b) a $500 million revolving credit facility (the "Revolving Facility" and, together with the Term Loan A Facility, the "Credit Facility"). Under Amendment No. 1, the maturity dates of the Term Loan A Facility and the Revolving Facility were extended to February 8, 2026. Borrowings under the Credit Agreement bear interest at a floating rate, which at the option of the Initial Borrowers may be either (a) a base rate plus an additional rate ranging from 0.25% to 1.25% per annum (determined based on a cash flow ratio) (the "Base Rate"), or (b) a Eurodollar rate plus an additional rate ranging from 1.25% to 2.25% per annum (determined based on a cash flow ratio) (the "Eurodollar Rate"). The Credit Agreement requires the Initial Borrowers to pay a commitment fee of between 0.25% and 0.50% (determined based on a cash flow ratio) in respect of the average daily unused commitments under the Revolving Facility. The Initial Borrowers also are required to pay customary letter of credit fees, as well as fronting fees, to banks that issue letters of credit pursuant to the Credit Agreement. All obligations under the Credit Agreement are guaranteed by certain of the Initial Borrowers' existing and future domestic restricted subsidiaries in accordance with the Credit Agreement. All obligations under the Credit Agreement, including the guarantees of those obligations, are secured by certain assets of the Initial Borrowers and certain of their subsidiaries (collectively, the "Loan Parties"). The Credit Agreement contains certain affirmative and negative covenants applicable to the Loan Parties. These include restrictions on the Loan Parties' ability to incur indebtedness, make investments, place liens on assets, dispose of assets, enter into certain affiliate transactions and make certain restricted payments, including restrictions on AMC Networks' ability to pay dividends on and to repurchase its common stock. The Credit Agreement also requires the Initial Borrowers to comply with the following financial covenants: (i) a maximum ratio of net debt to annual operating cash flow (each defined in the Credit Agreement) of 5.25:1 from January 1, 2021 through December 31, 2021 and decreasing to 5.00:1 on and after January 1, 2022, subject to increase (not to exceed 6.00:1) if AMC Networks consummates any leveraging acquisition; and (ii) a minimum ratio of annual operating cash flow to annual total interest expense (as defined in the Credit Agreement) of 2.50:1. The Revolving Facility was not drawn upon at December 31, 2022 or December 31, 2021. The total undrawn revolver commitment is available to be drawn for our general corporate purposes. AMC Networks was in compliance with all of its financial covenants under the Credit Facility as of December 31, 2022 and 2021. Senior Notes General terms The senior notes are guaranteed on a senior unsecured basis by the guarantors, in accordance with the related indenture. The guarantees are full and unconditional and joint and several. The indentures governing each of the senior notes contain certain affirmative and negative covenants applicable to AMC Networks and its restricted subsidiaries including restrictions on their ability to incur additional indebtedness, consummate certain assets sales, make investments in entities that are not restricted subsidiaries, create liens on their assets, enter into certain affiliate transactions and make certain restricted payments, including restrictions on AMC Networks' ability to pay dividends on, or repurchase, its common stock. 4.25% Notes due 2029 On February 8, 2021, AMC Networks issued and certain of AMC Networks’ subsidiaries (hereinafter, the “Guarantors”) guaranteed $1.0 billion aggregate principal amount of 4.25% senior notes due February 15, 2029 (the “4.25% Notes due 2029”) in a registered public offering and received net proceeds of $982.3 million, after deducting underwriting discounts and commissions and expenses. The Company used such proceeds to redeem (i) the remaining $400 million principal amount of the Company’s 4.75% senior notes due 2022 and (ii) $600 million principal amount of the Company’s 5.00% senior notes due 2024 on February 26, 2021 (the "Redemption Date"). The 4.75% senior notes due 2022 were redeemed at a redemption price of 100.000% of the principal amount of such notes and the 5.00% senior notes due 2024 were redeemed at a redemption price of 102.500% of the principal amount of such notes, in each case, plus accrued and unpaid interest to, but excluding, the Redemption Date. In connection with the redemptions, the Company incurred a loss on extinguishment of debt for the year ended December 31, 2021 of $22.1 million representing the redemption premium and the write-off of a portion of the unamortized discount and deferred financing costs. The 4.25% Notes due 2029 may be redeemed, at AMC Networks' option, in whole or in part, at any time on or after February 15, 2024, at a redemption price equal to 102.125% of the principal amount thereof (plus accrued and unpaid interest thereon, if any, to the date of such redemption), declining annually to 100% of the principal amount thereof (plus accrued and unpaid interest thereon, if any, to the date of such redemption) beginning on February 15, 2026. 4.75% Notes due 2025 On July 28, 2017, AMC Networks issued, and the Guarantors guaranteed $800 million aggregate principal amount of senior notes due August 1, 2025 (the "4.75% Notes due 2025") in a registered public offering. The 4.75% Notes due 2025 were issued net of a $14.0 million underwriting discount. AMC Networks used approximately $400 million of the net proceeds to repay loans under AMC Networks' Term Loan A Facility and to pay fees and expenses related to the issuance. The remaining proceeds are for general corporate purposes. The 4.75% Notes due 2025 were issued pursuant to an indenture, dated as of March 30, 2016, as amended by the Second Supplemental Indenture, dated as of July 28, 2017. The 4.75% Notes due 2025 may be redeemed, at AMC Networks' option, in whole or in part, at any time on or after August 1, 2021, at a redemption price equal to 102.375% of the principal amount thereof (plus accrued and unpaid interest thereon, if any, to the date of such redemption), declining annually to 100% of the principal amount thereof (plus accrued and unpaid interest thereon, if any, to the date of such redemption) beginning on August 1, 2023. 5.00% Notes due 2024 On March 30, 2016, the Company issued and the Guarantors guaranteed $1.0 billion in aggregate principal amount of 5.00% senior notes due 2024 (the "5.00% Notes due 2024"), net of an issuance discount of $17.5 million. AMC Networks used $703 million of the net proceeds of this offering to make a cash tender ("Tender Offer") for its outstanding 7.75% Notes due 2021 (the "7.75% Notes"). In addition, $45.6 million of the proceeds from the issuance of the 5.00% Notes due 2024 was used for the redemption of the 7.75% Notes not tendered. The remaining proceeds are for general corporate purposes. The 5.00% Notes due 2024 were issued pursuant to an indenture dated as of March 30, 2016. The 5.00% Notes due 2024 may be redeemed, in whole or in part, at any time on or after April 1, 2020, at a redemption price equal to 102.5% of the principal amount thereof (plus accrued and unpaid interest thereon, if any, to the date of such redemption), declining annually to 100% of the principal amount thereof (plus accrued and unpaid interest thereon, if any, to the date of such redemption) beginning on April 1, 2022. As discussed above, on February 26, 2021, the Company redeemed $600 million principal amount of its 5.00% Notes due 2024. 4.75% Notes due 2022 On December 17, 2012, AMC Networks issued and the Guarantors guaranteed $600 million in aggregate principal amount of its 4.75% senior notes, net of an issuance discount of $10.5 million, due December 15, 2022 (the "4.75% Notes due 2022"). AMC Networks used the net proceeds of this offering to repay the outstanding amount under its term loan B facility of approximately $587.6 million, with the remaining proceeds used for general corporate purposes. The 4.75% Notes due 2022 were issued pursuant to an indenture, and first supplemental indenture, each dated as of December 17, 2012. In March 2020 the Company redeemed $200 million principal amount of the outstanding $600 million principal amount of its 4.75% Notes due 2022. In connection with the redemption, the Company incurred a loss on extinguishment of debt for the year ended December 31, 2020 of $2.9 million representing the redemption premium and the write-off of a portion of the unamortized discount and deferred financing costs. As discussed above, on February 26, 2021, the Company redeemed the remaining $400 million principal amount of its 4.75% Notes due 2022. Other Debt A majority owned subsidiary of the Company had credit facilities totaling $4.5 million. The facilities bear interest at the greater of 3.5% or the prime rate plus 1% and matured on November 18, 2022. There were no outstanding borrowings under the credit facilities during 2022. Summary of Debt Maturities Total amounts payable by the Company under its various debt obligations outstanding as of December 31, 2022 are as follows: (In thousands) Years Ending December 31, 2023 $ 33,750 2024 467,500 2025 867,500 2026 472,500 2027 — Thereafter 1,000,000 $ 2,841,250 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: • Level I—Quoted prices for identical instruments in active markets. • Level II—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level III—Instruments whose significant value drivers are unobservable. The following table presents for each of these hierarchy levels, the Company's financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2022 and 2021: (In thousands) Level I Level II Level III Total At December 31, 2022: Assets: Cash equivalents $ 80,000 $ — $ — $ 80,000 Foreign currency derivatives — 536 — 536 Liabilities: Foreign currency derivatives — 8,965 — 8,965 At December 31, 2021: Assets: Marketable securities $ 5,771 $ — $ — $ 5,771 Foreign currency derivatives — 196 — 196 Liabilities: Foreign currency derivatives — 5,911 — 5,911 The Company's cash equivalents (comprised of money market mutual funds) and marketable securities are classified within Level I of the fair value hierarchy because they are valued using quoted market prices. The Company's foreign currency derivatives are classified within Level II of the fair value hierarchy and their fair values are determined based on a market approach valuation technique that uses readily observable market parameters and the consideration of counterparty risk. At December 31, 2022 or 2021, the Company does not have any other material assets or liabilities measured at fair value on a recurring basis that would be considered Level III. Fair value measurements are also used in nonrecurring valuations performed in connection with acquisition accounting and impairment testing. These nonrecurring valuations primarily include the valuation of program rights, goodwill, intangible assets and property and equipment. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level III of the fair value hierarchy. Credit Facility Debt and Senior Notes The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities. The carrying values and estimated fair values of the Company's financial instruments, excluding those that are carried at fair value in the consolidated balance sheets are summarized as follows: (In thousands) December 31, 2022 Carrying Amount Estimated Fair Value Debt instruments: Term Loan A Facility $ 633,486 $ 615,600 5.00% Notes due April 2024 398,687 375,348 4.75% Notes due August 2025 794,171 607,000 4.25% Notes due February 2029 986,109 620,818 $ 2,812,453 $ 2,218,766 (In thousands) December 31, 2021 Carrying Estimated Debt instruments: Term Loan A facility $ 664,581 $ 670,781 5.00% Notes due April 2024 397,693 403,500 4.75% Notes due August 2025 792,098 818,000 4.25% Notes due February 2029 984,098 997,500 $ 2,838,470 $ 2,889,781 Fair value estimates related to the Company's debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Risk To manage interest rate risk, the Company may enter into interest rate swap contracts to adjust the amount of total debt that is subject to variable interest rates. Such contracts effectively fix the borrowing rates on floating rate debt to limit the exposure against the risk of rising interest rates. The Company does not enter into interest rate swap contracts for speculative or trading purposes and it has only entered into interest rate swap contracts with financial institutions that it believes are creditworthy counterparties. The Company monitors the financial institutions that are counterparties to its interest rate swap contracts and to the extent possible diversifies its swap contracts among various counterparties to mitigate exposure to any single financial institution. The Company's risk management objective and strategy with respect to interest rate swap contracts is to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt. The Company is meeting its objective by hedging the risk of changes in its cash flows (interest payments) attributable to changes in the designated benchmark interest rate being hedged (the "hedged risk"), on an amount of the Company's debt principal equal to the then-outstanding swap notional. The forecasted interest payments are deemed to be probable of occurring. The Company assesses, both at the hedge's inception and on an ongoing basis, hedge effectiveness based on the overall changes in the fair value of the interest rate swap contracts. Hedge effectiveness of the interest rate swap contracts is based on a hypothetical derivative methodology. Any ineffective portion of an interest rate swap contract which is designated as a hedging instrument is recorded in current-period earnings. Changes in fair value of interest rate swap contracts not designated as hedging instruments are also recognized in earnings and included in interest expense. Foreign Currency Exchange Rate Risk We are exposed to foreign currency risk to the extent that we enter into transactions denominated in currencies other than one of our subsidiaries' respective functional currencies (non-functional currency risk), such as affiliation agreements, programming contracts, certain trade receivables and accounts payable (including intercompany amounts) that are denominated in a currency other than the applicable functional currency. To manage foreign currency exchange rate risk, the Company may enter into foreign currency contracts from time to time with financial institutions to limit the exposure to fluctuations in foreign currency exchange rates. The Company does not enter into foreign currency contracts for speculative or trading purposes. In certain circumstances, the Company enters into contracts that are settled in currencies other than the functional or local currencies of the contracting parties. Accordingly, these contracts consist of the underlying operational contract and an embedded foreign currency derivative element. Hedge accounting is not applied to the embedded foreign currency derivative element and changes in their fair values are included in miscellaneous, net in the consolidated statement of income. The fair values of the Company's derivative financial instruments included in the consolidated balance sheets are as follows: (In thousands) December 31, Balance Sheet Location 2022 2021 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 141 $ 180 Foreign currency derivatives Other assets 395 16 Liabilities: Foreign currency derivatives Accrued liabilities $ 3,663 $ 1,686 Foreign currency derivatives Current portion of program rights obligations 82 — Foreign currency derivatives Other liabilities 5,220 4,225 The amount of gains and losses related to the Company's derivative financial instruments designated as hedging instruments are as follows: (In thousands) Gain or (Loss) on Derivatives Location of Gain or (Loss) in Earnings Gain or (Loss) Reclassified Years Ended December 31, Years Ended December 31, 2022 2021 2022 2021 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ — $ (27) Interest expense $ — $ 2,430 (a) There were no gains or losses recognized in earnings related to any ineffective portion of the hedging relationship or related to any amount excluded from the assessment of hedge effectiveness for the years ended December 31, 2022 and 2021. The amount of gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are as follows: (In thousands) Location of Gain (Loss) Recognized in Earnings on Derivatives Amount of Gain (Loss) Recognized in Earnings on Derivatives Years Ended December 31, 2022 2021 2020 Foreign currency derivatives Miscellaneous, net $ (4,887) $ (2,678) $ (2,618) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Certain subsidiaries of the Company lease office space and equipment under long-term non-cancelable lease agreements which expire at various dates through 2033 . Leases with an initial term of 12 months or less are not recorded on the balance sheet, instead the lease expense is recorded on a straight-line basis over the lease term. For lease agreements entered into, we combine lease and non-lease components. Some leases include options to extend the lease term or terminate the lease prior to the end of the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The leases generally provide for fixed annual rentals plus certain other costs or credits. Some leases include rental payments based on a percentage of revenue over contractual levels or based on an index or rate. Our lease agreements do not include any material residual value guarantees or material restrictive covenants. The following table summarizes the leases included in the consolidated balance sheets as follows: December 31, (In thousands) Balance Sheet Location 2022 2021 Assets Operating Operating lease right-of-use assets $ 108,229 $ 125,866 Finance Property and equipment, net 10,982 12,080 Total lease assets $ 119,211 $ 137,946 Liabilities Current: Operating Current portion of lease obligations $ 32,207 $ 32,929 Finance Current portion of lease obligations 4,204 3,667 36,411 36,596 Noncurrent: Operating Lease obligations 105,768 128,319 Finance Lease obligations 19,031 23,520 124,799 151,839 Total lease liabilities $ 161,210 $ 188,435 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date. The following table summarizes the lease costs included in the consolidated statement of income: December 31, (In thousands) Income Statement Location 2022 2021 Operating lease costs Selling, general and administrative expenses $ 27,186 $ 28,189 Finance lease costs: Amortization of leased assets Depreciation and amortization 1,098 2,105 Interest on lease liabilities Interest expense 1,894 2,346 Short term lease costs Selling, general and administrative expenses 248 206 Variable lease costs Selling, general and administrative expenses 1,468 854 Total net lease costs $ 31,894 $ 33,700 The following table summarizes the maturity of lease liabilities for operating and finance leases as of December 31, 2022: (In thousands) Operating Leases Finance Leases Total 2023 $ 37,365 $ 5,786 $ 43,151 2024 36,215 5,812 42,027 2025 31,994 5,838 37,832 2026 27,717 2,087 29,804 2027 12,636 1,428 14,064 Thereafter 7,462 7,140 14,602 Total lease payments 153,389 28,091 181,480 Less: Interest 15,414 4,856 20,270 Present value of lease liabilities $ 137,975 $ 23,235 $ 161,210 The following table summarizes the weighted average remaining lease term and discount rate for operating and finance leases: December 31, 2022 December 31, 2021 Weighted average remaining lease term (years): Operating leases 4.6 5.1 Finance leases 6.6 7.8 Weighted average discount rate: Operating leases 4.6 % 4.5 % Finance leases 7.5 % 7.8 % The following table summarizes the supplemental cash paid for amounts in the measurement of lease liabilities: (In thousands) December 31, 2022 December 31, 2021 Operating cash flows from operating leases $ 39,857 $ 40,000 Operating cash flows from finance leases 1,947 1,789 Financing cash flows from finance leases 3,576 3,800 |
Leases | Leases Certain subsidiaries of the Company lease office space and equipment under long-term non-cancelable lease agreements which expire at various dates through 2033 . Leases with an initial term of 12 months or less are not recorded on the balance sheet, instead the lease expense is recorded on a straight-line basis over the lease term. For lease agreements entered into, we combine lease and non-lease components. Some leases include options to extend the lease term or terminate the lease prior to the end of the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The leases generally provide for fixed annual rentals plus certain other costs or credits. Some leases include rental payments based on a percentage of revenue over contractual levels or based on an index or rate. Our lease agreements do not include any material residual value guarantees or material restrictive covenants. The following table summarizes the leases included in the consolidated balance sheets as follows: December 31, (In thousands) Balance Sheet Location 2022 2021 Assets Operating Operating lease right-of-use assets $ 108,229 $ 125,866 Finance Property and equipment, net 10,982 12,080 Total lease assets $ 119,211 $ 137,946 Liabilities Current: Operating Current portion of lease obligations $ 32,207 $ 32,929 Finance Current portion of lease obligations 4,204 3,667 36,411 36,596 Noncurrent: Operating Lease obligations 105,768 128,319 Finance Lease obligations 19,031 23,520 124,799 151,839 Total lease liabilities $ 161,210 $ 188,435 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date. The following table summarizes the lease costs included in the consolidated statement of income: December 31, (In thousands) Income Statement Location 2022 2021 Operating lease costs Selling, general and administrative expenses $ 27,186 $ 28,189 Finance lease costs: Amortization of leased assets Depreciation and amortization 1,098 2,105 Interest on lease liabilities Interest expense 1,894 2,346 Short term lease costs Selling, general and administrative expenses 248 206 Variable lease costs Selling, general and administrative expenses 1,468 854 Total net lease costs $ 31,894 $ 33,700 The following table summarizes the maturity of lease liabilities for operating and finance leases as of December 31, 2022: (In thousands) Operating Leases Finance Leases Total 2023 $ 37,365 $ 5,786 $ 43,151 2024 36,215 5,812 42,027 2025 31,994 5,838 37,832 2026 27,717 2,087 29,804 2027 12,636 1,428 14,064 Thereafter 7,462 7,140 14,602 Total lease payments 153,389 28,091 181,480 Less: Interest 15,414 4,856 20,270 Present value of lease liabilities $ 137,975 $ 23,235 $ 161,210 The following table summarizes the weighted average remaining lease term and discount rate for operating and finance leases: December 31, 2022 December 31, 2021 Weighted average remaining lease term (years): Operating leases 4.6 5.1 Finance leases 6.6 7.8 Weighted average discount rate: Operating leases 4.6 % 4.5 % Finance leases 7.5 % 7.8 % The following table summarizes the supplemental cash paid for amounts in the measurement of lease liabilities: (In thousands) December 31, 2022 December 31, 2021 Operating cash flows from operating leases $ 39,857 $ 40,000 Operating cash flows from finance leases 1,947 1,789 Financing cash flows from finance leases 3,576 3,800 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) from continuing operations before income taxes consists of the following components: (In thousands) Years Ended December 31, 2022 2021 2020 Domestic $ (52,458) $ 292,364 $ 437,039 Foreign 22,506 81,868 (34,660) Total $ (29,952) $ 374,232 $ 402,379 Income tax expense (benefit) attributable to continuing operations consists of the following components: (In thousands) Years Ended December 31, 2022 2021 2020 Current expense (benefit): Federal $ (6,310) $ 19,751 $ 86,977 State 2,141 10,360 17,733 Foreign 18,933 25,990 23,845 14,764 56,101 128,555 Deferred expense (benefit): Federal (43,707) 24,923 (2,979) State (3,633) 2,715 (405) Foreign (3,349) 6,372 26,543 (50,689) 34,010 23,159 Tax expense (benefit) relating to uncertain tax positions, including accrued interest (5,055) 4,282 (6,323) Income tax expense (benefit) $ (40,980) $ 94,393 $ 145,391 A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: (In thousands) Years Ended December 31, 2022 2021 2020 U.S. federal statutory income tax rate 21 % 21 % 21 % State and local income taxes, net of federal benefit (a) 20 3 4 Effect of foreign operations (b) (11) (1) 2 Non-deductible compensation expenses (c) (35) 2 1 Excess tax deficiencies related to share-based compensation (5) (1) 2 Changes in the valuation allowance (d) (109) 3 10 Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits 16 1 (1) Deferral of investment tax credit benefit 4 (1) (1) Deemed liquidation - controlled foreign corporation (a) 235 — — Other 1 (2) (2) Effective income tax rate 137 % 25 % 36 % (a) In the year ended December 31, 2022, the deemed liquidation – controlled foreign corporation is a result of a capital loss sustained related to a change in the entity classification of a wholly-owned controlled foreign corporation. This also impacts state and local income taxes. (b) In the years ended December 31, 2022, 2021 and 2020, the effect of foreign operations relates to the income tax benefit or expense as a result of certain entities operating in foreign jurisdictions. (c) In the year ended December 31, 2022, the increase in nondeductible compensation expense is primarily due to contractual severance as a result of employee separations. In the year ended December 31, 2021, the increase in nondeductible compensation expense is primarily due to the expiration of grandfathered arrangements related to equity compensation under Internal Revenue Code Section 162(m). Prior periods have been restated for comparative purposes. (d) In the year ended December 31, 2022, the increase in valuation allowance relates primarily to the generation of excess capital losses and foreign tax credits. In the year ended December 31, 2021, the increase in valuation allowance from prior year relates primarily to the generation of excess foreign tax credits and a reduction in the expected utilization of interest expense carryforwards as a result of a tax assessment. The tax effects of temporary differences that give rise to significant components of deferred tax assets or liabilities at December 31, 2022 and 2021 are as follows: (In thousands) December 31, 2022 2021 Deferred Tax Asset (Liability) NOLs and tax credit carry forwards $ 101,793 $ 95,684 Compensation and benefit plans 24,451 19,450 Allowance for doubtful accounts 1,280 1,285 Fixed assets and intangible assets 35,678 39,860 Accrued interest expense 30,346 5,258 Unused capital losses 60,226 — Other liabilities 21,618 15,913 Deferred tax asset 275,392 177,450 Valuation allowance (132,164) (105,494) Net deferred tax asset 143,228 71,956 Prepaid liabilities (570) (642) Fixed assets and intangible assets (89,671) (106,820) Investments in partnerships (128,434) (92,866) Other assets (23,577) (23,894) Deferred tax liability (242,252) (224,222) Total net deferred tax liability $ (99,024) $ (152,266) At December 31, 2022, the Company had investment tax credit carry forwards of approximately $59.3 million, expiring on various dates from 2032 through 2037 and foreign tax credit carryforwards of approximately $47.3 million, expiring on various dates from 2024 through 2032. The foreign tax credit carryforwards have been reduced by a valuation allowance of $47.3 million as it is more likely than not that these carry forwards will not be realized. The Company had net operating loss carry forwards of approximately $318.9 million, related primarily to federal and state net operating losses acquired as a result of the purchase of the outstanding shares of RLJ Entertainment and Sentai Holdings of approximately $87.3 million and $6.8 million, respectively, as well as net operating loss carryforwards of our foreign subsidiaries. The deferred tax asset related to the federal and state net operating loss carryforward of approximately $20.8 million has expiration dates ranging from 2023 through 2042 (some are indefinite) and has been reduced by a valuation allowance of approximately $9.7 million, including $7.7 million that was recorded through goodwill as part of purchase accounting. Although the foreign net operating loss carry forward periods range from 5 years to unlimited, the related deferred tax assets of approximately $33.6 million for these carry forwards have been reduced by a valuation allowance of approximately $33.3 million as it is more likely than not that these carry forwards will not be realized. The deferred tax asset related to unused capital losses expires in 2027 and has been reduced by a valuation allowance of approximately $21.6 million as it is more likely than not that these losses will not be realized. The remainder of the valuation allowance at December 31, 2022 relates primarily to deferred tax assets attributable to temporary differences of certain foreign subsidiaries for which it is more likely than not that these deferred tax assets will not be realized. For the year ended December 31, 2022, $1.3 million relating to amortization of tax deductible second component goodwill was realized as a reduction in tax liability (as determined on a 'with-and-without' approach). At December 31, 2022, the liability for uncertain tax positions was $6.7 million, excluding accrued interest of $2.1 million and deferred tax assets of $1.7 million. All of such unrecognized tax benefits, if recognized, would reduce the Company's income tax expense and effective tax rate. A reconciliation of the beginning to ending amount of the liability for uncertain tax positions (excluding related accrued interest and deferred tax benefit) is as follows: (In thousands) Balance at December 31, 2021 $ 12,193 Increases related to current year tax positions 107 Increases related to prior year tax positions 476 Decreases related to prior year tax positions (364) Decreases due to settlements/payments (1,797) Decreases due to lapse of statute of limitations (3,965) Balance at December 31, 2022 $ 6,650 Interest benefit (net of the related deferred tax) of $1.3 million was recognized during the year ended December 31, 2022 and is included in income tax expense in the consolidated statement of income. At December 31, 2022 and 2021, the liability for uncertain tax positions and accrued interest are included in accrued liabilities and other liabilities, in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments (In thousands) Payments due by period Total Year 1 Years 2 - 3 Years 4 - 5 More than 5 years Purchase obligations (1) $ 912,167 $ 300,224 $ 200,680 $ 66,582 $ 344,681 (1) Purchase obligations consist primarily of program rights obligations, and transmission and marketing commitments. Legal Matters On August 14, 2017, Robert Kirkman, Robert Kirkman, LLC, Glen Mazzara, 44 Strong Productions, Inc., David Alpert, Circle of Confusion Productions, LLC, New Circle of Confusion Productions, Inc., Gale Anne Hurd, and Valhalla Entertainment, Inc. f/k/a Valhalla Motion Pictures, Inc. (together, the "Plaintiffs") filed a complaint in California Superior Court in connection with Plaintiffs’ rendering of services as writers and producers of the television series entitled The Walking Dead, as well as Fear the Walking Dead and/or Talking Dead, and the agreements between the parties related thereto (the "Walking Dead Litigation"). The Plaintiffs asserted that the Company had been improperly underpaying the Plaintiffs under their contracts with the Company and they asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and liability for violation of Cal. Bus. & Prof. Code § 17200. The Plaintiffs sought compensatory and punitive damages and restitution. On August 8, 2019, the judge in the Walking Dead Litigation ordered a trial to resolve certain issues of contract interpretation only. Following eight days of trial in February and March 2020, on July 22, 2020, the judge issued a Statement of Decision finding in the Company's favor on all seven matters of contract interpretation before the court in this first phase trial. On January 20, 2021, the Plaintiffs filed a second amended complaint, eliminating eight named defendants and their claims under Cal. Bus. & Prof. Code § 17200. On May 5, 2021, the Plaintiffs filed a third amended complaint, repleading in part their claims for alleged breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and certain breach of contract claims. On June 2, 2021, the Company filed a demurrer and motion to strike seeking to dismiss the claim for breach of the implied covenant of good faith and fair dealing and certain tort and breach of contract claims asserted in the third amended complaint. On July 27, 2021, the court granted in part and denied in part the Company's motion. On January 12, 2022, the Company filed a motion for summary adjudication of many of the remaining claims. On April 6, 2022, the court granted the Company’s summary adjudication motion in part, dismissing the Plaintiffs’ claims for breach of the implied covenant of good faith and fair dealing and inducing breach of contract. In December 2022, the parties entered into an agreement to resolve through confidential binding arbitration the remaining claims in the litigation (consisting mainly of ordinary course profit participation audit claims), which had been scheduled for a February 2023 jury trial. As a result, on January 9, 2023, the Plaintiffs filed with the court a notice of dismissal of the remaining claims, and on January 19, 2023, the court formally dismissed the case. On January, 26, 2023, the Plaintiffs filed a notice of appeal of the court’s post-trial, demurrer, and summary adjudication decisions. The Company believes the two remaining claims in the case for breach of contract, which will now be resolved through confidential binding arbitration, are without merit and is continuing to defend against them. At this time, no determination can be made as to the ultimate outcome of this litigation or the potential liability, if any, on the part of the Company. On November 14, 2022, the Plaintiffs filed a separate complaint in California Superior Court (the “MFN Litigation”) in connection with the Company’s July 16, 2021 settlement agreement with Frank Darabont (“Darabont”), Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (the “Darabont Parties”), which resolved litigations the Darabont Parties had brought in connection with Darabont's rendering services as a writer, director and producer of the television series entitled The Walking Dead and the agreement between the parties related thereto (the “Darabont Settlement”). Plaintiffs assert claims for breach of contract, alleging that the Company breached the most favored nations (“MFN”) provisions of Plaintiffs’ contracts with the Company by failing to pay them additional contingent compensation as a result of the Darabont Settlement (the “MFN Litigation”). Plaintiffs claim in the MFN Litigation that they are entitled to actual and compensatory damages in excess of $200 million. The Plaintiffs also bring a cause of action to enjoin an arbitration the Company commenced in May 2022 concerning the same dispute. On December 15, 2022, the Company removed the MFN Litigation to the United States District Court for the Central District of California. On January 13, 2023, the Company filed a motion to dismiss the MFN Litigation and informed the court that the Company had withdrawn the arbitration Plaintiffs sought to enjoin. The Company believes that the asserted claims are without merit and will vigorously defend against them if they are not dismissed. At this time, no determination can be made as to the ultimate outcome of this litigation or the potential liability, if any, on the part of the Company. The Company is party to various lawsuits and claims in the ordinary course of business, including the matters described above. Although the outcome of these matters cannot be predicted with certainty and while the impact of these matters on the Company's results of operations in any particular subsequent reporting period could be material, management does not believe that the resolution of these matters will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. |
Noncontroling Interests
Noncontroling Interests | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Redeemable Noncontrolling Interests In connection with the 2018 acquisition of RLJ Entertainment, the terms of the operating agreement provide the noncontrolling member with a right to put all of its noncontrolling interest to a subsidiary of the Company following the seventh anniversary of the agreement, or earlier upon a change of control. The put option is exercisable at the greater of the then fair market value or enterprise value of RLJ Entertainment, (but not lower than the fair value of the initial equity interest at the closing date of the agreement), in each case pursuant to the operating agreement and applied to the equity interest. In 2014, the Company, through a wholly-owned subsidiary, acquired 49.9% of the limited liability company interests of New Video Channel America L.L.C, that owns the cable channel BBC AMERICA. In connection with the acquisition, the terms of the agreement provide the BBC with a right to put all of its 50.1% noncontrolling interest to a subsidiary of the Company at the greater of the then fair value or the fair value of the initial equity interest at the closing date of the agreement. The put option is exercisable on the fifteenth and twenty-fifth anniversary of the joint venture agreement. Because exercise of these put rights is outside the Company's control, the noncontrolling interest in each entity is presented as redeemable noncontrolling interest outside of stockholders' equity on the Company's consolidated balance sheet. The activity reflected within redeemable noncontrolling interests for the years ended December 31, 2022 and 2021 is presented below. (In thousands) Redeemable Noncontrolling Interest December 31, 2020 $ 315,649 Net earnings 17,230 Distributions (22,430) Distribution related to spin-off transaction (8,233) Transfer to noncontrolling interest (18,367) December 31, 2021 283,849 Net losses (3,274) Distributions (27,435) Other 529 December 31, 2022 $ 253,669 In connection with the spin-off of the live comedy venue and talent management businesses of Levity Entertainment Group, LLC in 2021 (see Note 4), $8.2 million of redeemable noncontrolling interests was distributed to the noncontrolling partners. In addition, as part of the transaction, the preexisting put rights of the noncontrolling interest holders were terminated. Accordingly, the remaining $18.4 million of noncontrolling interests was transferred from Redeemable noncontrolling interests to Noncontrolling interests in the consolidated balance sheet. Non-redeemable Noncontrolling Interests |
Equity and Long-Term Incentive
Equity and Long-Term Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity and Long-Term Incentive Plans | Equity and Long-Term Incentive Plans On June 8, 2016, the Company's shareholders approved the AMC Networks Inc. 2016 Employee Stock Plan (the "2016 Employee Stock Plan") and the AMC Networks Inc. 2016 Executive Cash Incentive Plan (the "2016 Cash Incentive Plan"). On June 5, 2012, the Company's shareholders approved the AMC Networks Inc. 2011 Stock Plan for Non-Employee Directors (the "2011 Non-Employee Director Plan"). Equity Plans On June 11, 2020, the Company adopted the Amended and Restated 2016 Employee Stock Plan (the "2016 Employee Stock Plan"). The 2016 Employee Stock Plan provides for the grants of incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares, restricted stock units and other equity-based awards (collectively, "awards"). Under the 2016 Employee Stock Plan, the Company may grant awards for up to 12,000,000 shares of AMC Networks Class A Common Stock (subject to certain adjustments). Equity-based awards granted under the 2016 Employee Stock Plan must be granted with an exercise price of not less than the fair market value of a share of AMC Networks Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant. The terms and conditions of awards granted under the 2016 Employee Stock Plan, including vesting and exercisability, are determined by the Compensation Committee of the Board of Directors ("Compensation Committee") and may include terms or conditions based upon performance criteria. Awards issued to employees under the 2016 Employee Stock Plan will settle in shares of the Company's Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash. As of December 31, 2022, there are 8,175,717 share awards available for future grant under the 2016 Employee Stock Plan. On June 11, 2020, the Company adopted the Amended and Restated 2011 Stock Plan for Non-Employee Directors (the "2011 Non-Employee Director Plan"). Under the 2011 Non-Employee Director Plan, the Company is authorized to grant non- qualified stock options, restricted stock units, restricted shares, stock appreciation rights and other equity-based awards. The Company may grant awards for up to 665,000 shares of AMC Networks Class A Common Stock (subject to certain adjustments). Stock options under the 2011 Non-Employee Director Plan must be granted with an exercise price of not less than the fair market value of a share of AMC Networks Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant. The terms and conditions of awards granted under the 2011 Non-Employee Director Plan, including vesting and exercisability, are determined by the Compensation Committee. Unless otherwise provided in an applicable award agreement, stock options granted under this plan will be fully vested and exercisable, and restricted stock units granted under this plan will be fully vested, upon the date of grant and will settle in shares of the Company's Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash, on the first business day after ninety days from the date the director's service on the Board of Directors ceases or, if earlier, upon the director's death. As of December 31, 2022, there are 191,989 shares available for future grant under the 2011 Non-Employee Director Plan. Restricted Stock Unit Activity The following table summarizes activity relating to Company employees who held AMC Networks restricted stock units for the years ended December 31, 2022 and 2021: Number of Restricted Stock Units Number of Performance Restricted Stock Units Weighted Average Fair Value Per Stock Unit at Date of Grant Unvested award balance, December 31, 2020 1,002,537 1,477,622 $ 43.79 Granted 681,303 364 $ 71.25 Released/Vested (427,852) (823,510) $ 45.31 Canceled/Forfeited (66,323) (28,192) $ 45.43 Unvested award balance, December 31, 2021 1,189,665 626,284 $ 52.97 Granted 920,372 38,264 $ 36.03 Released/Vested (857,044) (624,401) $ 49.74 Canceled/Forfeited (221,269) (3,162) $ 46.15 Unvested award balance, December 31, 2022 1,031,724 36,985 $ 44.22 All restricted stock units granted vest ratably over a three The target number of PRSUs granted represents the right to receive a corresponding number of shares, subject to adjustment based on the performance of the Company against target performance criteria for a three year period. The number of shares issuable at the end of the applicable measurement period ranges from 0% to 200% of the target PRSU award. The following table summarizes activity relating to Non-employee Directors who held AMC Networks restricted stock units for the years ended December 31, 2022 and 2021: Number of Restricted Stock Units Weighted Average Vested award balance, December 31, 2020 260,365 $ 49.45 Granted 27,423 $ 64.43 Released/Vested (25,133) $ 48.94 Vested award balance, December 31, 2021 262,655 $ 51.19 Granted 47,398 $ 28.10 Released/Vested — $ — Vested award balance, December 31, 2022 310,053 $ 47.55 Stock Option Award Activity The following table summarizes activity relating to employees of the Company who held AMC Networks stock options: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Contractual Term (in years) Aggregate Intrinsic Value(a) Time Vesting Options Balance, December 31, 2020 202,961 $ 48.26 5.79 $ — Exercised (202,961) 48.26 Balance, December 31, 2021 — $ — — $ — Exercised — — — $ — Balance, December 31, 2022 — $ — — $ — Options exercisable at December 31, 2022 — $ — — $ — Options expected to vest in the future — $ — — $ — (a) The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of AMC Networks Class A Common Stock on the reporting date, as indicated. Share-based Compensation Expenses The Company recorded share-based compensation expenses of $37.7 million (including $7.7 million recorded as part of Restructuring and other related charges), $47.9 million and $52.9 million, reduced for forfeitures, for the years ended December 31, 2022, 2021 and 2020, respectively. Forfeitures are estimated based on historical experience. To the extent actual results of forfeitures differ from those estimates, such amounts are recorded as an adjustment in the period the estimates are revised. Share-based compensation expenses are recognized in the consolidated statements of income as part of selling, general and administrative expenses. As of December 31, 2022, there was $21.8 million of total unrecognized share-based compensation costs related to Company employees who held unvested AMC Networks restricted stock units. The unrecognized compensation cost is expected to be recognized over a weighted-average remaining period of approximately 1.9 years. There were no costs related to share-based compensation that were capitalized. The Company receives income tax deductions related to restricted stock units, stock options or other equity awards granted to its employees by the Company. Cash flows resulting from excess tax benefits and deficiencies are classified along with other income tax cash flows as an operating activity. Excess tax benefits are realized tax benefits from tax deductions for options exercised and restricted shares issued, in excess of the deferred tax asset attributable to stock compensation costs for such awards. Excess tax deficiencies are realized deficiencies from tax deductions being less than the deferred tax asset. Excess tax deficiencies/(benefits) of $1.4 million, $(4.6) million and $8.4 million were recorded for the years ended December 31, 2022, 2021 and 2020, respectively. Long-Term Incentive Plans Under the terms of the 2016 Cash Incentive Plan, the Company is authorized to grant a cash or equity based award to certain employees. The terms and conditions of such awards are determined by the Compensation Committee of the Company's Board of Directors, may include the achievement of certain performance criteria and may extend for a period not to exceed ten years. During 2022, 2021 and 2020, the Company granted long-term incentive cash awards. Long-term incentive compensation plan expense is recognized in the consolidated statements of income as part of selling, general and administrative expenses. The Company recorded long-term incentive compensation expense of $8.0 million, $22.5 million and $13.9 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit PlansCertain employees of the Company participate in the AMC Networks 401(k) Savings Plan (the "401(k) Plan"), a qualified defined contribution plan, and the AMC Networks Excess Savings Plan (the "Excess Savings Plan"), a non-qualified deferred compensation plan. Under the 401(k) Plan, participating Company employees may contribute into their plan accounts a percentage of their eligible pay on a before-tax basis as well as a percentage of their eligible pay on an after-tax basis. The Company makes matching contributions on behalf of participating employees in accordance with the terms of the 401(k) Plan. In addition to the matching contribution, the Company may make a discretionary year-end contribution to employee 401(k) Plan and Excess Savings Plan accounts, subject to certain conditions. Total expense related to all benefit plans was $4.3 million, $11.9 million and $9.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company does not provide postretirement benefits for any of its employees. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On June 30, 2011, Cablevision spun off the Company (the "Distribution") and the Company became an independent public company. At the time of the Distribution, both Cablevision and AMC Networks were controlled by Charles F. Dolan, certain members of his immediate family and certain family related entities (collectively the "Dolan Family"). Members of the Dolan Family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan Family, collectively beneficially own all of the Company's outstanding Class B Common Stock and own approximately 3% of the Company's outstanding Class A Common Stock. Such shares of the Company's Class A Common Stock and Class B Common Stock, collectively, represent approximatel y 79% of the aggregate voting power of the Company's outstanding common stock. Members of the Dolan Family are also the controlling stockholders of Madison Square Garden Sports Corp. ("MSGS") and Madison Square Garden Entertainment Corp. ("MSGE"). The Company provides services to and receives services from MSGS and MSGE . From time to time the Company enters into arrangements with 605, LLC. James L. Dolan, the Interim Executive Chairman and a director of the Company, and his spouse, Kristin A. Dolan, a director of the Company, own 50% of 605, LLC. Kristin A. Dolan is also the founder and Chief Executive Officer of 605, LLC. 605, LLC provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business. On August 1, 2022, the Audit Committee authorized the Company to enter into a Statement of Work for Strategic Analytic Services (the “Statement of Work”) with 605, LLC under the Master Services Agreement. The fees payable to 605, LLC by the Company for these services are $10.5 million payable in five installments with the first payment made upon execution of the agreement. The initial term of the Statement of Work ran from August 1, 2022 to December 31, 2022. The term was automatically extended to June 30, 2023 per the terms of the agreement. Under the Statement of Work, 605, LLC is engaged in a strategic, research, market, business and financial assessment of the Company and its business partnering with the Company’s management team. 605, LLC utilizes their expertise, including assessment of extensive real-time business intelligence and consumer research, to enable potential further acceleration of the Company’s long-term growth and value creation. Among the analytic services provided by 605, LLC are situation analysis, customer experience, data utilization, addressing the market, content strategy and overview, sales strategy, pricing analysis, customer profiles, content (by offering), marketing strategy and financial analysis. Revenues, net The Company and its related parties routinely enter into transactions with each other in the ordinary course of business. Revenues, net from related parties amounted to $5.1 million, $5.0 million and $4.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Selling, General and Administrative Amounts charged to the Company, included in selling, general and administrative expenses, pursuant to a transition services agreement and for other transactions with its related parties amounted to $8.0 million, $2.2 million and $0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. AMC Networks has an arrangement with the Dolan Family Office, LLC ("DFO"), MSGS and MSGE providing for the sharing of certain expenses associated with executive office space which are available to Charles F. Dolan (the Chairman Emeritus and a director of the Company and a director of MSGS and MSGE), James L. Dolan (the Interim Executive Chairman and a director of the Company and a director of MSGS and MSGE), and the DFO which is controlled by Charles F. Dolan. The Company's share of initial set-up costs and office expenses was not material. |
Cash Flows
Cash Flows | 12 Months Ended |
Dec. 31, 2022 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Cash Flows | Cash Flows During 2022, 2021 and 2020, the Company's non-cash investing and financing activities and other supplemental data were as follows: (In thousands) Years Ended December 31, 2022 2021 2020 Non-Cash Investing and Financing Activities: Operating lease additions $ 11,885 $ 28,522 $ 10,904 Finance lease additions — — 14,255 Capital expenditures incurred but not yet paid 8,298 8,826 5,689 Contingent consideration for purchase of noncontrolling interests 2,806 — — Supplemental Data: Cash interest paid 125,060 114,528 131,167 Income taxes paid, net 50,490 59,850 99,852 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table details the components of accumulated other comprehensive loss: (In thousands) Year Ended December 31, 2022 Currency Translation Adjustment Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Beginning Balance $ (175,818) $ — $ (175,818) Net current-period other comprehensive income (loss), before income taxes (63,982) — (63,982) Income tax expense 2 — 2 Net current-period other comprehensive income (loss), net of income taxes (63,980) — (63,980) Ending Balance $ (239,798) $ — $ (239,798) (In thousands) Year Ended December 31, 2021 Currency Translation Adjustment Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Beginning Balance $ (133,108) $ (1,842) $ (134,950) Net current-period other comprehensive income (loss), before income taxes (42,694) 2,403 (40,291) Income tax expense (benefit) (16) (561) (577) Net current-period other comprehensive income (loss), net of income taxes (42,710) 1,842 (40,868) Ending Balance $ (175,818) $ — $ (175,818) |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company classifies its operations into two operating segments: Domestic Operations and International and Other. These operating segments represent strategic business units that are managed separately. The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating income ("AOI"). The Company defines AOI as operating income (loss) before depreciation and amortization, cloud computing amortization, share-based compensation expenses or benefit, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. The Company has presented the components that reconcile adjusted operating income to operating income, and other information as to the continuing operations of the Company's operating segments below. (In thousands) Year Ended December 31, 2022 Domestic Operations International and Other Corporate / Inter-segment Consolidated Revenues, net Subscription $ 1,395,026 $ 223,515 $ — $ 1,618,541 Content licensing and other 491,870 135,406 (21,122) 606,154 Distribution and other 1,886,896 358,921 (21,122) 2,224,695 Advertising 788,246 83,604 — 871,850 Consolidated revenues, net $ 2,675,142 $ 442,525 $ (21,122) $ 3,096,545 Operating income (loss) $ 286,517 $ 3,031 $ (202,632) $ 86,916 Share-based compensation expenses 12,815 3,900 13,271 29,986 Depreciation and amortization 49,588 18,487 39,152 107,227 Impairment and other charges — 40,717 — 40,717 Restructuring and other related charges 423,205 2,854 22,907 448,966 Cloud computing amortization 23 — 7,319 7,342 Majority-owned equity investees AOI 17,248 — — 17,248 Adjusted operating income $ 789,396 $ 68,989 $ (119,983) $ 738,402 Capital expenditures $ 4,572 $ 6,039 $ 33,661 $ 44,272 (In thousands) Year Ended December 31, 2021 Domestic Operations International and Other Corporate / Inter-segment Consolidated Revenues, net Subscription $ 1,318,732 $ 249,844 $ — $ 1,568,576 Content licensing and other 416,898 155,805 (14,325) 558,378 Distribution and other 1,735,630 405,649 (14,325) 2,126,954 Advertising 844,986 105,668 — 950,654 Consolidated revenues, net $ 2,580,616 $ 511,317 $ (14,325) $ 3,077,608 Operating income (loss) $ 617,875 $ 37,167 $ (165,120) $ 489,922 Share-based compensation expenses 22,077 3,627 22,221 47,925 Depreciation and amortization 48,025 19,807 26,049 93,881 Impairment and other charges 143,000 16,610 — 159,610 Restructuring and other related charges 2,516 6,083 1,779 10,378 Cloud computing amortization — — 2,406 2,406 Majority-owned equity investees AOI 11,948 — — 11,948 Adjusted operating income $ 845,441 $ 83,294 $ (112,665) $ 816,070 Capital expenditures $ 9,635 $ 6,009 $ 26,928 $ 42,572 (In thousands) Year Ended December 31, 2020 Domestic Operations International and Other Corporate / Inter-segment Consolidated Revenues, net Subscription $ 1,145,970 $ 239,145 $ — $ 1,385,115 Content licensing and other 433,954 139,746 (19,675) 554,025 Distribution and other 1,579,924 378,891 (19,675) 1,939,140 Advertising 801,477 74,339 — 875,816 Consolidated revenues, net $ 2,381,401 $ 453,230 $ (19,675) $ 2,814,956 Operating income (loss) $ 734,871 $ (109,365) $ (182,862) $ 442,644 Share-based compensation expenses 10,605 2,988 39,315 52,908 Depreciation and amortization 50,574 26,465 27,567 104,606 Impairment and other charges — 122,227 — 122,227 Restructuring and other related charges 22,946 6,410 5,712 35,068 Cloud computing amortization — — 200 200 Majority-owned equity investees AOI 8,958 — — 8,958 Adjusted operating income $ 827,954 $ 48,725 $ (110,068) $ 766,611 Capital expenditures $ 12,301 $ 9,057 $ 25,237 $ 46,595 Subscription revenues in the Domestic Operations segment, include revenues related to the Company's streaming services of approximately $501.9 million, $370.8 million and $185.6 million for the years ended December 31, 2022, 2021 and 2020 respectively. Corporate overhead costs not allocated to the segments include such costs as executive salaries and benefits, costs of maintaining corporate headquarters, facilities and common support functions (such as human resources, legal, finance, strategic planning and information technology). Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment. (In thousands) Years Ended December 31, 2022 2021 2020 Inter-segment revenues Domestic Operations $ (17,643) $ (10,584) $ (15,852) International and Other (3,479) (3,741) (3,823) $ (21,122) $ (14,325) $ (19,675) One customer within the Domestic Operations segment accounted for approximately 10% of consolidated revenues, net for the year ended December 31, 2022. For the years ended December 31, 2021 and 2020, no customer accounted for 10% of consolidated revenues, net. The table below summarizes revenue based on customer location: Years Ended December 31, (In thousands) 2022 2021 2020 Revenue United States $ 2,574,504 $ 2,462,210 $ 2,267,754 Europe 354,492 432,682 385,787 Other 167,549 182,716 161,415 $ 3,096,545 $ 3,077,608 $ 2,814,956 The table below summarizes property and equipment based on asset location: Years Ended December 31, (In thousands) 2022 2021 Property and equipment, net United States $ 187,833 $ 210,252 Europe 12,520 14,510 Other 1,681 1,029 $ 202,034 $ 225,791 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | (In thousands) Balance at Beginning of Period Provision for (Recovery of) Bad Debt Deductions/ Write-Offs and Other Charges, Net Balance at End of Period Year Ended December 31, 2022 Allowance for doubtful accounts $ 8,030 $ 2,202 $ (1,507) $ 8,725 Year Ended December 31, 2021 Allowance for doubtful accounts $ 11,234 $ 5,337 $ (8,541) $ 8,030 Year Ended December 31, 2020 Allowance for doubtful accounts $ 5,733 $ (2,843) $ 8,344 $ 11,234 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of AMC Networks and its subsidiaries in which a controlling financial interest is maintained or variable interest entities ("VIEs") in which the Company has determined it is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets and the valuation and recoverability of goodwill and intangible assets. |
Reclassifications | Reclassifications Certain reclassifications were made to the prior period amounts to conform to the current period presentation. |
Revenue Recognition | Revenue RecognitionThe Company primarily earns revenue from (i) the distribution of its programming services, through distributors and directly to consumers, and licensing of its programming and other content, (ii) advertising, and (iii) other services. Revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer. |
Technical and Operating Expenses | Technical and Operating Expenses Costs of revenues, including but not limited to programming expenses, primarily consisting of amortization of program rights, such as those for original programming, feature films and licensed series, participation and residual costs, distribution and production related costs and program delivery costs, such as transmission, encryption, hosting and formatting are classified as technical and operating expenses in the consolidated statements of income. |
Advertising Expenses | Advertising ExpensesAdvertising costs are charged to expense when incurred and are included in selling, general and administrative expenses in the consolidated statements of income. |
Share-based Compensation | Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the portion of awards that are ultimately expected to vest. The cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award using a straight-line amortization method, except for restricted stock units granted to non-employee directors which vest 100%, and are expensed, at the date of grant. Share-based compensation expenses is included in selling, general and administrative expenses in the consolidated statements of income. |
Foreign Currency | Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of most of the Company's international subsidiaries is the local currency. Assets and liabilities, including intercompany balances for which settlement is anticipated in the foreseeable future, are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded as a component of other comprehensive income ("OCI") in the consolidated statements of stockholders' equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company's cash investments are placed with money market funds and financial institutions that are investment grade as rated by Standard & Poor's and Moody's Investors Service. The Company selects money market funds that predominantly invest in marketable, direct obligations issued or guaranteed by the U.S. government or its agencies, commercial paper, fully collateralized repurchase agreements, certificates of deposit, and time deposits. The Company considers the balance of its investment in funds that hold securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or are at fair value. |
Accounts Receivable, Trade | Accounts Receivable, Trade The Company periodically assesses the adequacy of valuation allowances for uncollectible accounts receivable using a forward looking expected loss model by |
Program Rights | Program Rights Rights to programming, including feature films and episodic series, acquired under license agreements are stated at the lower of unamortized cost or fair value. Such licensed rights along with the related obligations are recorded at the contract value when a license agreement is executed, unless there is uncertainty with respect to either cost, acceptability or availability. If such uncertainty exists, those rights and obligations are recorded at the earlier of when the uncertainty is resolved or the license period begins. Costs are amortized to technical and operating expenses on a straight-line or accelerated basis, based on the expected exploitation strategy of the rights, over a period not to exceed the respective license periods. Owned original programming costs are recorded as program rights on the consolidated balance sheet. Program rights that are monetized as a group are amortized based on projected usage, typically resulting in an accelerated amortization pattern. Projected program usage is based on the Company's current expectation of future exhibitions taking into account historical usage of similar content. To a lesser extent, program rights that are predominantly monetized individually are amortized to technical and operating expenses over their estimated useful lives, commencing upon the first airing, based on attributable revenue for airings to date as a percentage of total projected attributable revenue ("ultimate revenue") under the individual-film-forecast-computation method. Projected attributable revenue can change based upon programming market acceptance, levels of distribution and advertising revenue and decisions regarding planned program usage. These calculations require management to make assumptions and to apply judgment regarding revenue and planned usage. Accordingly, the Company periodically reviews revenue estimates and planned usage and revises its assumptions if necessary, which could impact the timing of amortization expense or result in a write-down to fair value. Any capitalized development costs for programs that the Company determines will not be produced are written off at the earlier of the time of abandonment or three years. The Company periodically reviews the programming usefulness of licensed and owned original program rights based on several factors, including expected future revenue generation from airings on the Company's networks and streaming services and other exploitation opportunities, ratings, type and quality of program material, standards and practices, and fitness for exhibition through various forms of distribution. If events or changes in circumstances indicate that the fair value of a film predominantly monetized individually or a film group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost. See Note 6 for further discussion regarding program rights. Effective January 1, 2020, the Company adopted FASB ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials . The guidance impacts the Company as follows: • Allows for the classification of acquired/licensed program rights as long-term assets. Previously, the Company reported a portion of these rights in current assets. Advances for live program rights made prior to the live event and acquired/licensed program rights with license terms of less than one year continue to be reported in current assets. • Aligns the capitalization of production costs for episodic television programs with the capitalization of production costs for theatrical content. Previously, theatrical content production costs could be fully capitalized while episodic television production costs were generally limited to the amount of contracted revenues. • Introduces the concept of “predominant monetization strategy” to classify capitalized program rights for purposes of amortization and impairment as follows: ◦ Individual program rights - programming value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g., theatrical revenues, significant in-show advertising on the Company’s programming networks or specific content licensing revenues). ◦ Group program rights - programming value is predominantly derived from third-party revenues that are not directly attributable to a specific film or television title (e.g., library of program rights for purpose of the Company’s programming networks or subscription revenue for streaming services). |
Investments | Investments Investments in equity securities (excluding equity method investments) with readily determinable fair values are accounted for at fair value. The Company applies the measurement alternative to fair value for equity securities without readily determinable fair values, which is to record the investments at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. All gains and losses related to equity securities are recorded in earnings as a component of miscellaneous, net, in the consolidated statements of income. Investments in which the Company has the ability to exercise significant influence but does not control and is not the primary beneficiary are equity method investments. Significant influence typically exists if the Company has a 20% to 50% ownership interest in a venture unless persuasive evidence to the contrary exists. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments and expenses incurred on behalf of investees as well as payments from equity method investees such as dividends and distributions are recorded as adjustments to investment balances. The Company applies the cumulative earnings approach for determining the cash flow presentation of cash distributions received from equity method investees. Distributions received are included in the consolidated statements of cash flows as operating activities, unless the cumulative distributions (less distributions received in prior periods that were determined to be returns of investment) exceed the Company's portion of the cumulative equity in the net earnings of the equity method investment, in which case the excess distributions are deemed to be returns of the investment and are classified as investing activities in the consolidated statements of cash flows. The Company |
Long-Lived Assets | Long-Lived Assets Property and equipment are carried at cost. Equipment under finance leases is recorded at the present value of the total minimum lease payments. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets or, with respect to equipment under finance leases and leasehold improvements, amortized over the shorter of the lease term or the assets' useful lives and reported in depreciation and amortization in the consolidated statements of income. Amortizable intangible assets established in connection with business combinations primarily consist of affiliate and customer relationships, advertiser relationships and trade names. Amortizable intangible assets are amortized on a straight-line basis over their respective estimated useful lives. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and identifiable intangible assets that have indefinite useful lives are not amortized, but instead are tested annually for impairment and upon the occurrence of certain events or substantive changes in circumstances. Goodwill The annual goodwill impairment test allows for the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity may choose to perform the qualitative assessment on none, some or all of its reporting units or an entity may bypass the qualitative assessment for any reporting unit and proceed directly to step one of the quantitative impairment test. If it is determined, on the basis of qualitative factors, that the fair value of a reporting unit is, more likely than not, less than its carrying value, the quantitative impairment test is required. The quantitative impairment test calculates any goodwill impairment as the difference between the carrying amount of a reporting unit and its fair value, but not to exceed the carrying amount of goodwill. Indefinite-Lived Intangible Assets Indefinite-lived intangible assets established in connection with business combinations consist of trademarks. The annual indefinite-lived intangible asset impairment test allows for the option to first assess qualitative factors to determine whether it is more likely than not that the fair value is less than its carrying amount. If it is determined, on the basis of qualitative factors, that the fair value is, more likely than not, less than its carrying value, the quantitative impairment test is required. The quantitative impairment test consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. |
Deferred Carriage Fees | Deferred Carriage Fees Deferred carriage fees, included in other assets in the consolidated balance sheets, represent amounts principally paid to multichannel video programming distributors to obtain additional subscribers and/or guarantee carriage of certain programming services and are amortized as a reduction of revenue over the period of the related affiliation arrangement (up to 5 years). |
Derivative Financial Instruments | Derivative Financial InstrumentsThe Company's derivative financial instruments are recorded as either assets or liabilities in the consolidated balance sheet based on their fair values. The Company's embedded derivative financial instruments which are clearly and closely related to the host contracts are not accounted for on a stand-alone basis. Changes in the fair values are reported in earnings or other comprehensive income depending on the use of the derivative and whether it qualifies for hedge accounting. Derivative instruments are designated and accounted for as either a hedge of a recognized asset or liability (fair value hedge) or a hedge of a forecasted transaction (cash flow hedge). For derivatives not designated as hedges, changes in fair values are recognized in earnings and included in interest expense, for interest rate swap contracts and miscellaneous, net, for foreign currency and other derivative contracts. For derivatives designated as effective cash flow hedges, changes in fair values are recognized in other comprehensive income (loss). Changes in fair values related to fair value hedges as well as the ineffective portion of cash flow hedges are recognized in earnings. Changes in the fair value of the underlying hedged item of a fair value hedge are also recognized in earnings. |
Income Taxes | Income Taxes The Company's provision for income taxes is based on current period income, changes in deferred tax assets and liabilities and estimates with regard to the liability for unrecognized tax benefits resulting from uncertain tax positions. Deferred tax assets are evaluated quarterly for expected future realization and reduced by a valuation allowance to the extent management believes it is more likely than not that a portion will not be realized. The Company provides deferred taxes for the outside basis difference for its investment in partnerships and uses the deferral method to recognize the income tax benefit from investment tax credits. Global intangible low taxed income (“GILTI”) tax is treated as a period expense. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. |
Commitments and Contingencies | Commitments and ContingenciesLiabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the contingency can be reasonably estimated. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. Cash is invested in money market funds and bank time deposits. The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company's emphasis is primarily on safety of principal and liquidity and secondarily on maximizing the yield on its investments. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling InterestsNoncontrolling interest with redemption features, such as put options, that are not solely within the Company's control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are considered to be temporary equity and are reported in the mezzanine section between total liabilities and stockholders' equity in the Company's consolidated balance sheet at the greater of their initial carrying amount, increased or decreased for contributions, distributions and the noncontrolling interest's share of net income or loss, or redemption value. |
Net Income per Share | Net Income per Share The consolidated statements of income present basic and diluted net income per share ("EPS"). Basic EPS is based upon net income divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the dilutive effects of AMC Networks outstanding equity-based awards. |
Common Stock of AMC Networks | Common Stock of AMC Networks Each holder of AMC Networks Class A Common Stock has one vote per share while holders of AMC Networks Class B Common Stock have ten votes per share. AMC Networks Class B shares can be converted to AMC Networks Class A Common Stock at any time with a conversion ratio of one AMC Networks Class A common share for one AMC Networks Class B common share. The AMC Networks Class A stockholders are entitled to elect 25% of the Company's Board of Directors. AMC Networks Class B stockholders have the right to elect the remaining members of the Company's Board of Directors. In addition, |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standards In November 2021, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , requiring annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. The new guidance requires the disclosure of the nature of the transactions, the accounting policies used to account for the transactions, and the effect of the transactions on the financial statements. The Company adopted the new guidance prospectively for the year ended December 31, 2022, which impacts disclosures of tax incentives related to the production of content. Effective January 1, 2021, the Company adopted FASB ASU 2019-12, Simplifying the Accounting for Income Taxes . ASU 2019-12 removes certain exceptions to the general principles in Accounting Standards Codification (“ASC”) Topic 740 - Income Taxes. The adoption of the standard did not have a material effect on the Company's consolidated financial statements. Effective January 1, 2020, the Company adopted FASB ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which changed the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking "expected loss" model that would generally result in the earlier recognition of allowances for losses. The Company adopted the standard using the modified retrospective approach and recorded a decrease to opening retained earnings of $2.0 million, after taxes, for the cumulative-effect of the adoption. Effective January 1, 2020, the Company adopted FASB ASU No. 2018-13, Fair Value Measurement (Topic 820) . The standard changed the disclosure requirements related to transfers between Level I and II assets, as well as several aspects surrounding the valuation process and unrealized gains and losses related to Level III assets. The adoption of the standard did not have any effect on the Company's consolidated financial statements. Effective January 1, 2020, the Company adopted FASB ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The standard amended prior guidance to align the accounting for costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs associated with developing or obtaining internal-use software. Capitalized implementation costs must be expensed over the term of the hosting arrangement and presented in the same line item in the income statement as the fees associated with the hosting element (service) of the arrangement. The adoption of the standard did not have a material effect on the Company's consolidated financial statements. Effective January 1, 2020, the Company adopted FASB ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The standard aligns the accounting for production costs of episodic television series with the accounting for production costs of films. In addition, the standard modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements in ASC Topic 926-20 and the impairment, presentation and disclosure requirements in ASC 920-350. The Company adopted the standard on a prospective basis. See Note 6 for further information. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Shares | The following is a reconciliation between basic and diluted weighted average shares outstanding: (In thousands) Years Ended December 31, 2022 2021 2020 Basic weighted average shares outstanding 43,135 42,361 51,016 Effect of dilution: Stock options — 3 — Restricted stock units 596 1,075 717 Diluted weighted average shares outstanding 43,731 43,439 51,733 |
Schedule of Stock by Class | The following table summarizes common stock share activity for all years presented: Shares Outstanding (In thousands) Class A Common Stock Class B Common Stock Balance at December 31, 2019 44,078 11,484 Share repurchases (14,785) — Employee and non-employee director stock transactions* 682 — Balance at December 31, 2020 29,975 11,484 Employee and non-employee director stock transactions* 917 — Balance at December 31, 2021 30,892 11,484 Employee and non-employee director stock transactions* 633 — Balance at December 31, 2022 31,525 11,484 *Reflects common stock activity in connection with restricted stock units and stock options granted to employees, as well as in connection with the fulfillment of employees' statutory tax withholding obligations for applicable income and other employment taxes and forfeited employee restricted stock units. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers. (In thousands) December 31, 2022 December 31, 2021 Balances from contracts with customers: Accounts receivable (including long-term receivables, within Other assets) $ 1,003,505 $ 1,106,225 Contract assets, short-term (included in Prepaid expenses and other current assets) 48,594 69,351 Contract assets, long-term (included in Other assets) — 29,323 Contract liabilities, short-term (Deferred revenue) 134,883 167,071 Contract liabilities, long-term (Deferred revenue included in Other liabilities) 683 31,832 (a) Revenue recognized for the twelve months ended December 31, 2022, 2021, and 2020, relating to the contract liabilities at December 31, 2021, 2020, and 2019 was $185.6 million, $61.2 million, and $47.2 million, respectively. |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Summary of Accrued Restructuring Costs | The following table summarizes the restructuring and other related charges recognized by operating segment: Years Ended December 31, (In thousands) 2022 2021 2020 Domestic Operations $ 423,205 $ 2,516 $ 22,946 International and Other 2,854 6,083 6,410 Corporate / Inter-segment Eliminations 22,907 1,779 5,712 Total restructuring and other related charges $ 448,966 $ 10,378 $ 35,068 The following table summarizes the restructuring and other related charges recognized for the three years: Years Ended December 31, (In thousands) 2022 2021 2020 Restructuring charges $ 45,212 $ 10,378 $ 35,068 Content impairments 403,754 — — Total restructuring and other related charges $ 448,966 $ 10,378 $ 35,068 The following table summarizes the accrued restructuring and other related costs: (In thousands) Severance and Employee-Related Costs Content Impairments and Other Exit Costs Total Balance at December 31, 2020 $ 25,571 $ 31 $ 25,602 Charges 5,921 4,457 10,378 Cash payments (31,245) (256) (31,501) Non-cash adjustments — (4,201) (4,201) Currency translation 64 (2) 62 Balance at December 31, 2021 311 29 340 Charges 45,212 403,754 448,966 Cash payments (311) (13) (324) Non-cash adjustments (7,698) (329,046) (336,744) Currency translation (364) — (364) Balance at December 31, 2022 $ 37,150 $ 74,724 $ 111,874 |
Program Rights and Obligations
Program Rights and Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Film, Disclosures [Abstract] | |
Schedule of Program Rights by Predominant Monetization Strategy | Total capitalized produced and licensed content by predominant monetization strategy is as follows: December 31, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 215,496 $ 322,248 $ 537,744 In-production and in-development 45,098 294,086 339,184 Total owned original program rights, net $ 260,594 $ 616,334 $ 876,928 Licensed program rights, net: Licensed film and acquired series $ 3,092 $ 642,768 $ 645,860 Licensed originals 5,373 171,418 176,791 Advances and content versioning costs — 74,167 74,167 Total licensed program rights, net 8,465 888,353 896,818 Program rights, net $ 269,059 $ 1,504,687 $ 1,773,746 Current portion of program rights, net $ 10,807 Program rights, net (long-term) 1,762,939 $ 1,773,746 December 31, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 185,228 $ 127,470 $ 312,698 In-production and in-development 161,881 264,927 426,808 Total owned original program rights, net $ 347,109 $ 392,397 $ 739,506 Licensed program rights, net: Licensed film and acquired series $ 7,005 $ 620,935 $ 627,940 Licensed originals 61,923 148,063 209,986 Advances and content versioning costs 57,278 107,196 164,474 Total licensed program rights, net 126,206 876,194 1,002,400 Program rights, net $ 473,315 $ 1,268,591 $ 1,741,906 Current portion of program rights, net $ 10,068 Program rights, net (long-term) 1,731,838 $ 1,741,906 |
Schedule of Amortization of Owned and Licensed Program Rights | Amortization, including write-offs, of owned and licensed program rights is as follows: Year Ended December 31, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Included in Technical and operating: Owned original program rights $ 279,910 $ 182,695 $ 462,605 Licensed program rights 37,935 507,930 545,865 $ 317,845 $ 690,625 $ 1,008,470 Included in Restructuring and other related charges: Owned original program rights $ 192,749 $ 24,914 $ 217,663 Licensed program rights 110,830 75,261 186,091 $ 303,579 $ 100,175 $ 403,754 Year Ended December 31, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 307,676 $ 53,547 $ 361,223 Licensed program rights 73,648 474,468 548,116 Program rights amortization $ 381,324 $ 528,015 $ 909,339 |
Schedule of Expected Amortization of Owned and Licensed Program Rights | The following table presents the expected amortization over each of the next three years of completed program rights on the consolidated balance sheet as of December 31, 2022: (In thousands) 2023 2024 2025 Owned original program rights: Predominantly Monetized Individually $ 88,280 $ 56,156 $ 36,587 Predominantly Monetized as a Group 149,888 90,913 53,964 Licensed program rights: Predominantly Monetized Individually $ 4,483 $ 2,279 $ 1,493 Predominantly Monetized as a Group 395,510 257,667 130,785 |
Schedule of Amounts Payable for Program Rights Obligations | Amounts payable subsequent to December 31, 2022 related to program rights obligations included in the consolidated balance sheet are as follows: (In thousands) Years Ending December 31, 2023 $ 374,115 2024 128,115 2025 49,921 2026 13,058 2027 5,790 Thereafter 3,985 $ 574,984 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment (including equipment under finance leases) consists of the following: (In thousands) December 31, Estimated Useful Lives 2022 2021 Program, service and test equipment $ 314,234 $ 279,067 2 to 5 years Satellite equipment 40,051 41,134 Term of lease Furniture and fixtures 12,490 13,933 3 to 8 years Transmission equipment 30,169 30,925 5 years Leasehold improvements 149,996 146,865 Term of lease Property and equipment 546,940 511,924 Accumulated depreciation and amortization (344,906) (286,133) Property and equipment, net $ 202,034 $ 225,791 |
Summary of Finance Leases | At December 31, 2022 and 2021, the gross amount of equipment and related accumulated amortization recorded under finance leases were as follows: (In thousands) December 31, 2022 2021 Satellite equipment $ 40,051 $ 41,134 Less accumulated amortization (29,069) (29,054) $ 10,982 $ 12,080 The following table summarizes the lease costs included in the consolidated statement of income: December 31, (In thousands) Income Statement Location 2022 2021 Operating lease costs Selling, general and administrative expenses $ 27,186 $ 28,189 Finance lease costs: Amortization of leased assets Depreciation and amortization 1,098 2,105 Interest on lease liabilities Interest expense 1,894 2,346 Short term lease costs Selling, general and administrative expenses 248 206 Variable lease costs Selling, general and administrative expenses 1,468 854 Total net lease costs $ 31,894 $ 33,700 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill, by operating segment is as follows: (In thousands) Domestic Operations International and Other Total December 31, 2020 $ 333,502 $ 352,905 $ 686,407 Goodwill written off related to spin-off of a business unit — (476) (476) Additions 21,312 11,902 33,214 Amortization of "second component" goodwill (1,344) — (1,344) Foreign currency translation — (8,457) (8,457) December 31, 2021 353,470 355,874 709,344 Purchase accounting adjustments (2,834) — (2,834) Impairment charge — (40,717) (40,717) Amortization of "second component" goodwill (1,344) — (1,344) Foreign currency translation — (21,030) (21,030) December 31, 2022 $ 349,292 $ 294,127 $ 643,419 |
Schedule of Finite-Lived Intangible Assets | The following table summarizes information relating to the Company's identifiable intangible assets: (In thousands) December 31, 2022 Estimated Useful Lives Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 634,000 $ (373,240) $ 260,760 6 to 25 years Advertiser relationships 46,282 (34,443) 11,839 11 years Trade names and other amortizable intangible assets 105,338 (43,161) 62,177 3 to 20 years Total amortizable intangible assets 785,620 (450,844) 334,776 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 805,520 $ (450,844) $ 354,676 (In thousands) December 31, 2021 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 649,543 $ (354,673) $ 294,870 Advertiser relationships 46,282 (30,235) 16,047 Trade names and other amortizable intangible assets 111,151 (42,534) 68,617 Total amortizable intangible assets 806,976 (427,442) 379,534 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 826,876 $ (427,442) $ 399,434 |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes information relating to the Company's identifiable intangible assets: (In thousands) December 31, 2022 Estimated Useful Lives Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 634,000 $ (373,240) $ 260,760 6 to 25 years Advertiser relationships 46,282 (34,443) 11,839 11 years Trade names and other amortizable intangible assets 105,338 (43,161) 62,177 3 to 20 years Total amortizable intangible assets 785,620 (450,844) 334,776 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 805,520 $ (450,844) $ 354,676 (In thousands) December 31, 2021 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 649,543 $ (354,673) $ 294,870 Advertiser relationships 46,282 (30,235) 16,047 Trade names and other amortizable intangible assets 111,151 (42,534) 68,617 Total amortizable intangible assets 806,976 (427,442) 379,534 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 826,876 $ (427,442) $ 399,434 |
Schedule of Estimated Amortization Expense | Estimated aggregate amortization expense for intangible assets subject to amortization for each of the following five years is: (In thousands) Years Ending December 31, 2023 $ 41,487 2024 41,416 2025 39,697 2026 35,342 2027 31,184 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: (In thousands) December 31, 2022 December 31, 2021 Employee related costs $ 97,362 $ 128,388 Participations and residuals 138,384 133,988 Interest 37,105 36,922 Restructuring and other related charges 107,998 340 Other accrued expenses 38,216 40,769 Total accrued liabilities $ 419,065 $ 340,407 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company's long-term debt consists of: (In thousands) December 31, 2022 December 31, 2021 Senior Secured Credit Facility: Term Loan A Facility $ 641,250 $ 675,000 Senior Notes: 5.00% Notes due April 2024 400,000 400,000 4.75% Notes due August 2025 800,000 800,000 4.25% Notes due February 2029 1,000,000 1,000,000 Total long-term debt 2,841,250 2,875,000 Unamortized discount (18,718) (23,167) Unamortized deferred financing costs (10,079) (13,363) Long-term debt, net 2,812,453 2,838,470 Current portion of long-term debt 33,750 33,750 Noncurrent portion of long-term debt $ 2,778,703 $ 2,804,720 |
Schedule of Maturities of Long-term Debt | Total amounts payable by the Company under its various debt obligations outstanding as of December 31, 2022 are as follows: (In thousands) Years Ending December 31, 2023 $ 33,750 2024 467,500 2025 867,500 2026 472,500 2027 — Thereafter 1,000,000 $ 2,841,250 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents for each of these hierarchy levels, the Company's financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2022 and 2021: (In thousands) Level I Level II Level III Total At December 31, 2022: Assets: Cash equivalents $ 80,000 $ — $ — $ 80,000 Foreign currency derivatives — 536 — 536 Liabilities: Foreign currency derivatives — 8,965 — 8,965 At December 31, 2021: Assets: Marketable securities $ 5,771 $ — $ — $ 5,771 Foreign currency derivatives — 196 — 196 Liabilities: Foreign currency derivatives — 5,911 — 5,911 |
Schedule of Carrying Values and Fair Values of the Company's Financial Instruments | The carrying values and estimated fair values of the Company's financial instruments, excluding those that are carried at fair value in the consolidated balance sheets are summarized as follows: (In thousands) December 31, 2022 Carrying Amount Estimated Fair Value Debt instruments: Term Loan A Facility $ 633,486 $ 615,600 5.00% Notes due April 2024 398,687 375,348 4.75% Notes due August 2025 794,171 607,000 4.25% Notes due February 2029 986,109 620,818 $ 2,812,453 $ 2,218,766 (In thousands) December 31, 2021 Carrying Estimated Debt instruments: Term Loan A facility $ 664,581 $ 670,781 5.00% Notes due April 2024 397,693 403,500 4.75% Notes due August 2025 792,098 818,000 4.25% Notes due February 2029 984,098 997,500 $ 2,838,470 $ 2,889,781 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments Included in Balance Sheets | The fair values of the Company's derivative financial instruments included in the consolidated balance sheets are as follows: (In thousands) December 31, Balance Sheet Location 2022 2021 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 141 $ 180 Foreign currency derivatives Other assets 395 16 Liabilities: Foreign currency derivatives Accrued liabilities $ 3,663 $ 1,686 Foreign currency derivatives Current portion of program rights obligations 82 — Foreign currency derivatives Other liabilities 5,220 4,225 |
Schedule Of Gains And Losses Related To Derivative Instruments | The amount of gains and losses related to the Company's derivative financial instruments designated as hedging instruments are as follows: (In thousands) Gain or (Loss) on Derivatives Location of Gain or (Loss) in Earnings Gain or (Loss) Reclassified Years Ended December 31, Years Ended December 31, 2022 2021 2022 2021 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ — $ (27) Interest expense $ — $ 2,430 (a) There were no gains or losses recognized in earnings related to any ineffective portion of the hedging relationship or related to any amount excluded from the assessment of hedge effectiveness for the years ended December 31, 2022 and 2021. |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The amount of gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are as follows: (In thousands) Location of Gain (Loss) Recognized in Earnings on Derivatives Amount of Gain (Loss) Recognized in Earnings on Derivatives Years Ended December 31, 2022 2021 2020 Foreign currency derivatives Miscellaneous, net $ (4,887) $ (2,678) $ (2,618) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Summary of Leases Included in the Consolidated Balance Sheets | The following table summarizes the leases included in the consolidated balance sheets as follows: December 31, (In thousands) Balance Sheet Location 2022 2021 Assets Operating Operating lease right-of-use assets $ 108,229 $ 125,866 Finance Property and equipment, net 10,982 12,080 Total lease assets $ 119,211 $ 137,946 Liabilities Current: Operating Current portion of lease obligations $ 32,207 $ 32,929 Finance Current portion of lease obligations 4,204 3,667 36,411 36,596 Noncurrent: Operating Lease obligations 105,768 128,319 Finance Lease obligations 19,031 23,520 124,799 151,839 Total lease liabilities $ 161,210 $ 188,435 |
Summary of Lease Costs | At December 31, 2022 and 2021, the gross amount of equipment and related accumulated amortization recorded under finance leases were as follows: (In thousands) December 31, 2022 2021 Satellite equipment $ 40,051 $ 41,134 Less accumulated amortization (29,069) (29,054) $ 10,982 $ 12,080 The following table summarizes the lease costs included in the consolidated statement of income: December 31, (In thousands) Income Statement Location 2022 2021 Operating lease costs Selling, general and administrative expenses $ 27,186 $ 28,189 Finance lease costs: Amortization of leased assets Depreciation and amortization 1,098 2,105 Interest on lease liabilities Interest expense 1,894 2,346 Short term lease costs Selling, general and administrative expenses 248 206 Variable lease costs Selling, general and administrative expenses 1,468 854 Total net lease costs $ 31,894 $ 33,700 |
Summary of Maturity of Lease Liabilities for Operating Leases | The following table summarizes the maturity of lease liabilities for operating and finance leases as of December 31, 2022: (In thousands) Operating Leases Finance Leases Total 2023 $ 37,365 $ 5,786 $ 43,151 2024 36,215 5,812 42,027 2025 31,994 5,838 37,832 2026 27,717 2,087 29,804 2027 12,636 1,428 14,064 Thereafter 7,462 7,140 14,602 Total lease payments 153,389 28,091 181,480 Less: Interest 15,414 4,856 20,270 Present value of lease liabilities $ 137,975 $ 23,235 $ 161,210 |
Summary of Maturity of Lease Liabilities for Financing Leases | The following table summarizes the maturity of lease liabilities for operating and finance leases as of December 31, 2022: (In thousands) Operating Leases Finance Leases Total 2023 $ 37,365 $ 5,786 $ 43,151 2024 36,215 5,812 42,027 2025 31,994 5,838 37,832 2026 27,717 2,087 29,804 2027 12,636 1,428 14,064 Thereafter 7,462 7,140 14,602 Total lease payments 153,389 28,091 181,480 Less: Interest 15,414 4,856 20,270 Present value of lease liabilities $ 137,975 $ 23,235 $ 161,210 |
Summary of Lease Information | The following table summarizes the weighted average remaining lease term and discount rate for operating and finance leases: December 31, 2022 December 31, 2021 Weighted average remaining lease term (years): Operating leases 4.6 5.1 Finance leases 6.6 7.8 Weighted average discount rate: Operating leases 4.6 % 4.5 % Finance leases 7.5 % 7.8 % |
Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities | The following table summarizes the supplemental cash paid for amounts in the measurement of lease liabilities: (In thousands) December 31, 2022 December 31, 2021 Operating cash flows from operating leases $ 39,857 $ 40,000 Operating cash flows from finance leases 1,947 1,789 Financing cash flows from finance leases 3,576 3,800 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) from continuing operations before income taxes consists of the following components: (In thousands) Years Ended December 31, 2022 2021 2020 Domestic $ (52,458) $ 292,364 $ 437,039 Foreign 22,506 81,868 (34,660) Total $ (29,952) $ 374,232 $ 402,379 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) attributable to continuing operations consists of the following components: (In thousands) Years Ended December 31, 2022 2021 2020 Current expense (benefit): Federal $ (6,310) $ 19,751 $ 86,977 State 2,141 10,360 17,733 Foreign 18,933 25,990 23,845 14,764 56,101 128,555 Deferred expense (benefit): Federal (43,707) 24,923 (2,979) State (3,633) 2,715 (405) Foreign (3,349) 6,372 26,543 (50,689) 34,010 23,159 Tax expense (benefit) relating to uncertain tax positions, including accrued interest (5,055) 4,282 (6,323) Income tax expense (benefit) $ (40,980) $ 94,393 $ 145,391 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: (In thousands) Years Ended December 31, 2022 2021 2020 U.S. federal statutory income tax rate 21 % 21 % 21 % State and local income taxes, net of federal benefit (a) 20 3 4 Effect of foreign operations (b) (11) (1) 2 Non-deductible compensation expenses (c) (35) 2 1 Excess tax deficiencies related to share-based compensation (5) (1) 2 Changes in the valuation allowance (d) (109) 3 10 Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits 16 1 (1) Deferral of investment tax credit benefit 4 (1) (1) Deemed liquidation - controlled foreign corporation (a) 235 — — Other 1 (2) (2) Effective income tax rate 137 % 25 % 36 % (a) In the year ended December 31, 2022, the deemed liquidation – controlled foreign corporation is a result of a capital loss sustained related to a change in the entity classification of a wholly-owned controlled foreign corporation. This also impacts state and local income taxes. (b) In the years ended December 31, 2022, 2021 and 2020, the effect of foreign operations relates to the income tax benefit or expense as a result of certain entities operating in foreign jurisdictions. (c) In the year ended December 31, 2022, the increase in nondeductible compensation expense is primarily due to contractual severance as a result of employee separations. In the year ended December 31, 2021, the increase in nondeductible compensation expense is primarily due to the expiration of grandfathered arrangements related to equity compensation under Internal Revenue Code Section 162(m). Prior periods have been restated for comparative purposes. (d) In the year ended December 31, 2022, the increase in valuation allowance relates primarily to the generation of excess capital losses and foreign tax credits. In the year ended December 31, 2021, the increase in valuation allowance from prior year relates primarily to the generation of excess foreign tax credits and a reduction in the expected utilization of interest expense carryforwards as a result of a tax assessment. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant components of deferred tax assets or liabilities at December 31, 2022 and 2021 are as follows: (In thousands) December 31, 2022 2021 Deferred Tax Asset (Liability) NOLs and tax credit carry forwards $ 101,793 $ 95,684 Compensation and benefit plans 24,451 19,450 Allowance for doubtful accounts 1,280 1,285 Fixed assets and intangible assets 35,678 39,860 Accrued interest expense 30,346 5,258 Unused capital losses 60,226 — Other liabilities 21,618 15,913 Deferred tax asset 275,392 177,450 Valuation allowance (132,164) (105,494) Net deferred tax asset 143,228 71,956 Prepaid liabilities (570) (642) Fixed assets and intangible assets (89,671) (106,820) Investments in partnerships (128,434) (92,866) Other assets (23,577) (23,894) Deferred tax liability (242,252) (224,222) Total net deferred tax liability $ (99,024) $ (152,266) |
Schedule Of Unrecognized Tax Benefits Reconciliation | A reconciliation of the beginning to ending amount of the liability for uncertain tax positions (excluding related accrued interest and deferred tax benefit) is as follows: (In thousands) Balance at December 31, 2021 $ 12,193 Increases related to current year tax positions 107 Increases related to prior year tax positions 476 Decreases related to prior year tax positions (364) Decreases due to settlements/payments (1,797) Decreases due to lapse of statute of limitations (3,965) Balance at December 31, 2022 $ 6,650 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligation, Fiscal Year Maturity Schedule | Commitments (In thousands) Payments due by period Total Year 1 Years 2 - 3 Years 4 - 5 More than 5 years Purchase obligations (1) $ 912,167 $ 300,224 $ 200,680 $ 66,582 $ 344,681 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The activity reflected within redeemable noncontrolling interests for the years ended December 31, 2022 and 2021 is presented below. (In thousands) Redeemable Noncontrolling Interest December 31, 2020 $ 315,649 Net earnings 17,230 Distributions (22,430) Distribution related to spin-off transaction (8,233) Transfer to noncontrolling interest (18,367) December 31, 2021 283,849 Net losses (3,274) Distributions (27,435) Other 529 December 31, 2022 $ 253,669 |
Equity and Long-Term Incentiv_2
Equity and Long-Term Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes activity relating to Company employees who held AMC Networks restricted stock units for the years ended December 31, 2022 and 2021: Number of Restricted Stock Units Number of Performance Restricted Stock Units Weighted Average Fair Value Per Stock Unit at Date of Grant Unvested award balance, December 31, 2020 1,002,537 1,477,622 $ 43.79 Granted 681,303 364 $ 71.25 Released/Vested (427,852) (823,510) $ 45.31 Canceled/Forfeited (66,323) (28,192) $ 45.43 Unvested award balance, December 31, 2021 1,189,665 626,284 $ 52.97 Granted 920,372 38,264 $ 36.03 Released/Vested (857,044) (624,401) $ 49.74 Canceled/Forfeited (221,269) (3,162) $ 46.15 Unvested award balance, December 31, 2022 1,031,724 36,985 $ 44.22 The following table summarizes activity relating to Non-employee Directors who held AMC Networks restricted stock units for the years ended December 31, 2022 and 2021: Number of Restricted Stock Units Weighted Average Vested award balance, December 31, 2020 260,365 $ 49.45 Granted 27,423 $ 64.43 Released/Vested (25,133) $ 48.94 Vested award balance, December 31, 2021 262,655 $ 51.19 Granted 47,398 $ 28.10 Released/Vested — $ — Vested award balance, December 31, 2022 310,053 $ 47.55 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes activity relating to employees of the Company who held AMC Networks stock options: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Contractual Term (in years) Aggregate Intrinsic Value(a) Time Vesting Options Balance, December 31, 2020 202,961 $ 48.26 5.79 $ — Exercised (202,961) 48.26 Balance, December 31, 2021 — $ — — $ — Exercised — — — $ — Balance, December 31, 2022 — $ — — $ — Options exercisable at December 31, 2022 — $ — — $ — Options expected to vest in the future — $ — — $ — (a) The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of AMC Networks Class A Common Stock on the reporting date, as indicated. |
Cash Flows (Tables)
Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Summary Of Non-Cash Activities And Other Supplemental Data | During 2022, 2021 and 2020, the Company's non-cash investing and financing activities and other supplemental data were as follows: (In thousands) Years Ended December 31, 2022 2021 2020 Non-Cash Investing and Financing Activities: Operating lease additions $ 11,885 $ 28,522 $ 10,904 Finance lease additions — — 14,255 Capital expenditures incurred but not yet paid 8,298 8,826 5,689 Contingent consideration for purchase of noncontrolling interests 2,806 — — Supplemental Data: Cash interest paid 125,060 114,528 131,167 Income taxes paid, net 50,490 59,850 99,852 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table details the components of accumulated other comprehensive loss: (In thousands) Year Ended December 31, 2022 Currency Translation Adjustment Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Beginning Balance $ (175,818) $ — $ (175,818) Net current-period other comprehensive income (loss), before income taxes (63,982) — (63,982) Income tax expense 2 — 2 Net current-period other comprehensive income (loss), net of income taxes (63,980) — (63,980) Ending Balance $ (239,798) $ — $ (239,798) (In thousands) Year Ended December 31, 2021 Currency Translation Adjustment Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Loss Beginning Balance $ (133,108) $ (1,842) $ (134,950) Net current-period other comprehensive income (loss), before income taxes (42,694) 2,403 (40,291) Income tax expense (benefit) (16) (561) (577) Net current-period other comprehensive income (loss), net of income taxes (42,710) 1,842 (40,868) Ending Balance $ (175,818) $ — $ (175,818) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Summary of Continuing Operations by Reportable Segment | The Company has presented the components that reconcile adjusted operating income to operating income, and other information as to the continuing operations of the Company's operating segments below. (In thousands) Year Ended December 31, 2022 Domestic Operations International and Other Corporate / Inter-segment Consolidated Revenues, net Subscription $ 1,395,026 $ 223,515 $ — $ 1,618,541 Content licensing and other 491,870 135,406 (21,122) 606,154 Distribution and other 1,886,896 358,921 (21,122) 2,224,695 Advertising 788,246 83,604 — 871,850 Consolidated revenues, net $ 2,675,142 $ 442,525 $ (21,122) $ 3,096,545 Operating income (loss) $ 286,517 $ 3,031 $ (202,632) $ 86,916 Share-based compensation expenses 12,815 3,900 13,271 29,986 Depreciation and amortization 49,588 18,487 39,152 107,227 Impairment and other charges — 40,717 — 40,717 Restructuring and other related charges 423,205 2,854 22,907 448,966 Cloud computing amortization 23 — 7,319 7,342 Majority-owned equity investees AOI 17,248 — — 17,248 Adjusted operating income $ 789,396 $ 68,989 $ (119,983) $ 738,402 Capital expenditures $ 4,572 $ 6,039 $ 33,661 $ 44,272 (In thousands) Year Ended December 31, 2021 Domestic Operations International and Other Corporate / Inter-segment Consolidated Revenues, net Subscription $ 1,318,732 $ 249,844 $ — $ 1,568,576 Content licensing and other 416,898 155,805 (14,325) 558,378 Distribution and other 1,735,630 405,649 (14,325) 2,126,954 Advertising 844,986 105,668 — 950,654 Consolidated revenues, net $ 2,580,616 $ 511,317 $ (14,325) $ 3,077,608 Operating income (loss) $ 617,875 $ 37,167 $ (165,120) $ 489,922 Share-based compensation expenses 22,077 3,627 22,221 47,925 Depreciation and amortization 48,025 19,807 26,049 93,881 Impairment and other charges 143,000 16,610 — 159,610 Restructuring and other related charges 2,516 6,083 1,779 10,378 Cloud computing amortization — — 2,406 2,406 Majority-owned equity investees AOI 11,948 — — 11,948 Adjusted operating income $ 845,441 $ 83,294 $ (112,665) $ 816,070 Capital expenditures $ 9,635 $ 6,009 $ 26,928 $ 42,572 (In thousands) Year Ended December 31, 2020 Domestic Operations International and Other Corporate / Inter-segment Consolidated Revenues, net Subscription $ 1,145,970 $ 239,145 $ — $ 1,385,115 Content licensing and other 433,954 139,746 (19,675) 554,025 Distribution and other 1,579,924 378,891 (19,675) 1,939,140 Advertising 801,477 74,339 — 875,816 Consolidated revenues, net $ 2,381,401 $ 453,230 $ (19,675) $ 2,814,956 Operating income (loss) $ 734,871 $ (109,365) $ (182,862) $ 442,644 Share-based compensation expenses 10,605 2,988 39,315 52,908 Depreciation and amortization 50,574 26,465 27,567 104,606 Impairment and other charges — 122,227 — 122,227 Restructuring and other related charges 22,946 6,410 5,712 35,068 Cloud computing amortization — — 200 200 Majority-owned equity investees AOI 8,958 — — 8,958 Adjusted operating income $ 827,954 $ 48,725 $ (110,068) $ 766,611 Capital expenditures $ 12,301 $ 9,057 $ 25,237 $ 46,595 |
Schedule of Summary of Inter-Segment Eliminations | Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment. (In thousands) Years Ended December 31, 2022 2021 2020 Inter-segment revenues Domestic Operations $ (17,643) $ (10,584) $ (15,852) International and Other (3,479) (3,741) (3,823) $ (21,122) $ (14,325) $ (19,675) |
Schedule of Revenue by Geographic Area | The table below summarizes revenue based on customer location: Years Ended December 31, (In thousands) 2022 2021 2020 Revenue United States $ 2,574,504 $ 2,462,210 $ 2,267,754 Europe 354,492 432,682 385,787 Other 167,549 182,716 161,415 $ 3,096,545 $ 3,077,608 $ 2,814,956 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets | The table below summarizes property and equipment based on asset location: Years Ended December 31, (In thousands) 2022 2021 Property and equipment, net United States $ 187,833 $ 210,252 Europe 12,520 14,510 Other 1,681 1,029 $ 202,034 $ 225,791 |
Description of Business and B_3
Description of Business and Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 network segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | segment | 2 |
Number of national programming networks | network | 5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Oct. 21, 2020 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) vote customer shares | Dec. 31, 2021 USD ($) customer shares | Dec. 31, 2020 USD ($) shares | Sep. 16, 2020 USD ($) $ / shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Advertising costs | $ 379,000,000 | $ 383,000,000 | $ 246,900,000 | ||
Foreign currency transaction gains (losses) | (1,200,000) | 12,200,000 | $ (4,000,000) | ||
Accounts receivable contractually due in excess of one-year | $ 281,300,000 | $ 293,400,000 | |||
Threshold period for write-off of capitalized development costs | 3 years | ||||
Antidilutive securities excluded from EPS | shares | 800,000 | 400,000 | 300,000 | ||
Repurchase amount (up to) | $ 1,500,000,000 | ||||
Available for repurchase under program | 135,300,000 | ||||
Aggregate cost | $ 250,600,000 | $ 356,701,000 | |||
Decrease to retained earnings | $ (2,105,641,000) | $ (2,098,047,000) | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Decrease to retained earnings | $ 2,000,000 | ||||
Accounts Receivable | Customer Concentration Risk | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of customers | customer | 2 | 2 | |||
Accounts Receivable | Customer Concentration Risk | Customer One | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Concentration risk, percentage | 14% | 14% | |||
Accounts Receivable | Customer Concentration Risk | Customer Two | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Concentration risk, percentage | 12% | 13% | |||
Class A Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock, voting rights | vote | 1 | ||||
Common stock, conversion ratio | 1 | ||||
Stockholders entitled election of Board of Directors | 25% | ||||
Repurchase amount (up to) | $ 250,000,000 | ||||
Share repurchases | shares | 10,800,000 | 0 | 0 | 14,785,000 | |
Additional percentage | 2% | ||||
Average purchase (in dollars per share) | $ / shares | $ 23.20 | ||||
Class B Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Common stock, voting rights | vote | 10 | ||||
Common stock, conversion ratio | 1 | ||||
Share repurchases | shares | 0 | ||||
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Period of related affiliation arrangement (up to) | 5 years | ||||
Maximum | Class A Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Share price (in dollars per share) | $ / shares | $ 26.50 | ||||
Minimum | Class A Common Stock | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Share price (in dollars per share) | $ / shares | $ 22.50 | ||||
Prepaid expenses and other current assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax receivable, program rights | $ 143,100,000 | ||||
Other Noncurrent Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Income tax receivable, program rights | $ 104,500,000 | ||||
2011 Non-Employee Director Plan | Restricted stock units | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Vesting percentage | 100% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Net Income Per Share) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Basic weighted average shares outstanding (in shares) | 43,135 | 42,361 | 51,016 |
Effect of dilution: | |||
Diluted weighted average shares outstanding (in shares) | 43,731 | 43,439 | 51,733 |
Stock options | |||
Effect of dilution: | |||
Effect of dilution (in shares) | 0 | 3 | 0 |
Restricted stock units | |||
Effect of dilution: | |||
Effect of dilution (in shares) | 596 | 1,075 | 717 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Stock by Class) (Details) - shares | 12 Months Ended | |||
Oct. 21, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class A Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 30,892,000 | 29,975,000 | 44,078,000 | |
Share repurchases | (10,800,000) | 0 | 0 | (14,785,000) |
Employee and non-employee director stock transactions | 633,000 | 917,000 | 682,000 | |
Ending Balance (in shares) | 31,525,000 | 30,892,000 | 29,975,000 | |
Class B Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 11,484,000 | 11,484,000 | 11,484,000 | |
Share repurchases | 0 | |||
Employee and non-employee director stock transactions | 0 | 0 | 0 | |
Ending Balance (in shares) | 11,484,000 | 11,484,000 | 11,484,000 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognition period | 1 year |
Distribution | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognition period | 1 year |
Advertising | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 30 days |
Advertising | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognition period | 1 year |
Minimum | Distribution | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 30 days |
Maximum | Distribution | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 45 days |
Revenue Recognition (Contract w
Revenue Recognition (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable (including long-term receivables, within Other assets) | $ 1,003,505 | $ 1,106,225 | |
Contract assets, short-term (included in Prepaid expenses and other current assets) | 48,594 | 69,351 | |
Contract assets, long-term (included in Other assets) | 0 | 29,323 | |
Contract liabilities, short-term (Deferred revenue) | 134,883 | 167,071 | |
Contract liabilities, long-term (Deferred revenue included in Other liabilities) | 683 | 31,832 | |
Revenue recognized | $ 185,600 | $ 61,200 | $ 47,200 |
Impairment and Other Charges (D
Impairment and Other Charges (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 16, 2021 | Dec. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment charge related to goodwill | $ 40,700,000 | $ 25,100,000 | $ 40,717,000 | |||||
Impairment and other charges | 40,717,000 | $ 159,610,000 | $ 122,227,000 | |||||
Impairments of intangibles and property and equipment associated with the sale of a subsidiary | $ 0 | $ 0 | 97,100,000 | |||||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment and other charges | |||||||
A M C N I Reporting Unit | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment charge related to goodwill | $ 25,100,000 | |||||||
Spinoff | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Loss on disposal | $ 16,600,000 | |||||||
Plaintiffs | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Loss contingency, damages awarded, value | $ 200,000,000 | |||||||
Litigation settlement, expense | $ 143,000,000 | |||||||
Loss contingency accrual | $ 57,000,000 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 448,966 | $ 10,378 | $ 35,068 |
Accrued restructuring and other related costs | 111,874 | 340 | 25,602 |
Accrued liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring and other related costs | 108,000 | 300 | |
Other liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring and other related costs | 3,900 | ||
2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 449,000 | ||
Corporate / Inter-segment Eliminations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 22,907 | 1,779 | 5,712 |
Severance and Employee-Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 45,212 | 5,921 | 21,200 |
Accrued restructuring and other related costs | 37,150 | 311 | 25,571 |
Severance and Employee-Related Costs | 2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 45,200 | ||
Severance and Employee-Related Costs | November 2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 4,300 | ||
Severance and Employee-Related Costs | A M C N I Reporting Unit | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 6,100 | ||
Severance and Employee-Related Costs | Corporate / Inter-segment Eliminations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 5,200 | ||
Severance and Employee-Related Costs | Domestic Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 15,800 | ||
Severance and Employee-Related Costs | International and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 200 | ||
Content Impairments | 2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 403,800 | ||
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 13,900 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges (Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 45,212 | $ 10,378 | $ 35,068 |
Non-cash restructuring and other related charges | 403,754 | 0 | 0 |
Restructuring and other related charges | 448,966 | 10,378 | 35,068 |
Corporate / Inter-segment Eliminations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 22,907 | 1,779 | 5,712 |
Domestic Operations | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | 423,205 | 2,516 | 22,946 |
International and Other | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 2,854 | $ 6,083 | $ 6,410 |
Restructuring and Other Relat_5
Restructuring and Other Related Charges (Summary of Accrued Restructuring and Other Related Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring costs, beginning balance | $ 340 | $ 25,602 | |
Restructuring and other related charges | 448,966 | 10,378 | $ 35,068 |
Cash payments | (324) | (31,501) | |
Non-cash adjustments | (336,744) | (4,201) | |
Currency translation | (364) | 62 | |
Accrued restructuring costs, ending balance | 111,874 | 340 | 25,602 |
Severance and Employee-Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring costs, beginning balance | 311 | 25,571 | |
Restructuring and other related charges | 45,212 | 5,921 | 21,200 |
Cash payments | (311) | (31,245) | |
Non-cash adjustments | (7,698) | 0 | |
Currency translation | (364) | 64 | |
Accrued restructuring costs, ending balance | 37,150 | 311 | 25,571 |
Content Impairments and Other Exit Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring and other related charges | 13,900 | ||
Content Impairments and Other Exit Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring costs, beginning balance | 29 | 31 | |
Restructuring and other related charges | 403,754 | 4,457 | |
Cash payments | (13) | (256) | |
Non-cash adjustments | (329,046) | (4,201) | |
Currency translation | 0 | (2) | |
Accrued restructuring costs, ending balance | $ 74,724 | $ 29 | $ 31 |
Program Rights and Obligation_2
Program Rights and Obligations (Program Rights by Predominant Monetization Strategy) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Predominantly Monetized Individually | ||
Completed | $ 215,496 | $ 185,228 |
In-production and in-development | 45,098 | 161,881 |
Total owned original program rights, net | 260,594 | 347,109 |
Licensed film and acquired series | 3,092 | 7,005 |
Licensed originals | 5,373 | 61,923 |
Advances and content versioning costs | 0 | 57,278 |
Total licensed program rights, net | 8,465 | 126,206 |
Program rights, net | 269,059 | 473,315 |
Predominantly Monetized as a Group | ||
Completed | 322,248 | 127,470 |
In-production and in-development | 294,086 | 264,927 |
Total owned original program rights, net | 616,334 | 392,397 |
Licensed film and acquired series | 642,768 | 620,935 |
Licensed originals | 171,418 | 148,063 |
Advances and content versioning costs | 74,167 | 107,196 |
Total licensed program rights, net | 888,353 | 876,194 |
Program rights, net | 1,504,687 | 1,268,591 |
Total | ||
Completed | 537,744 | 312,698 |
In-production and in-development | 339,184 | 426,808 |
Total owned original program rights, net | 876,928 | 739,506 |
Licensed film and acquired series | 645,860 | 627,940 |
Licensed originals | 176,791 | 209,986 |
Advances and content versioning costs | 74,167 | 164,474 |
Total licensed program rights, net | 896,818 | 1,002,400 |
Program rights, net | 1,773,746 | 1,741,906 |
Current portion of program rights, net | 10,807 | 10,068 |
Program rights, net (long-term) | $ 1,762,939 | $ 1,731,838 |
Program Rights and Obligation_3
Program Rights and Obligations (Amortization of Owned and Licensed Program Rights) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Owned original program rights | ||
Predominantly Monetized Individually | $ 307,676 | |
Predominantly Monetized as a Group | 53,547 | |
Total | 361,223 | |
Licensed program rights | ||
Predominantly Monetized Individually | 73,648 | |
Predominantly Monetized as a Group | 474,468 | |
Total | 548,116 | |
Predominantly Monetized Individually | 381,324 | |
Predominantly Monetized as a Group | 528,015 | |
Total | $ 909,339 | |
Included in Technical and operating: | ||
Owned original program rights | ||
Predominantly Monetized Individually | $ 279,910 | |
Predominantly Monetized as a Group | 182,695 | |
Total | 462,605 | |
Licensed program rights | ||
Predominantly Monetized Individually | 37,935 | |
Predominantly Monetized as a Group | 507,930 | |
Total | 545,865 | |
Predominantly Monetized Individually | 317,845 | |
Predominantly Monetized as a Group | 690,625 | |
Total | $ 1,008,470 | |
Film, Monetized in Film Group, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Technical and operating (excluding depreciation and amortization) | |
Film, Monetized on Its Own, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Technical and operating (excluding depreciation and amortization) | |
Included in Restructuring and other related charges: | ||
Owned original program rights | ||
Predominantly Monetized Individually | $ 192,749 | |
Predominantly Monetized as a Group | 24,914 | |
Total | 217,663 | |
Licensed program rights | ||
Predominantly Monetized Individually | 110,830 | |
Predominantly Monetized as a Group | 75,261 | |
Total | 186,091 | |
Predominantly Monetized Individually | 303,579 | |
Predominantly Monetized as a Group | 100,175 | |
Total | $ 403,754 | |
Film, Monetized in Film Group, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring and other related charges | |
Film, Monetized on Its Own, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring and other related charges |
Program Rights and Obligation_4
Program Rights and Obligations (Expected Amortization of Owned and Licensed Program Rights) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Predominantly Monetized Individually | |
2023 | $ 88,280 |
2024 | 56,156 |
2025 | 36,587 |
Predominantly Monetized as a Group | |
2023 | 149,888 |
2024 | 90,913 |
2025 | 53,964 |
Predominantly Monetized Individually | |
2023 | 4,483 |
2024 | 2,279 |
2025 | 1,493 |
Predominantly Monetized as a Group | |
2023 | 395,510 |
2024 | 257,667 |
2025 | $ 130,785 |
Program Rights and Obligation_5
Program Rights and Obligations (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Film, Disclosures [Abstract] | |||
Program write-offs, restructuring and other related charges | $ 403.8 | ||
Program rights write-offs | $ 12.8 | $ 108.3 |
Program Rights and Obligation_6
Program Rights and Obligations (Schedule of Future Payments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Film, Disclosures [Abstract] | |
2023 | $ 374,115 |
2024 | 128,115 |
2025 | 49,921 |
2026 | 13,058 |
2027 | 5,790 |
Thereafter | 3,985 |
Total | $ 574,984 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2022 | Jun. 30, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Feb. 28, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investments | $ 79,600,000 | $ 93,700,000 | $ 27,400,000 | |||||||
Payments to acquire equity method investments | $ 23,800,000 | |||||||||
Equity method investment gain loss related to step up fair value | $ 12,300,000 | |||||||||
Investments in marketable equity securities | 0 | 5,800,000 | ||||||||
Proceeds from sale and maturity of marketable securities | $ 9,900,000 | $ 51,000,000 | ||||||||
Equity securities, FV-NI, gain (loss) | $ 4,100,000 | 4,100,000 | (11,100,000) | $ 82,800,000 | ||||||
Equity securities, FV-NI, realized gain (loss) | $ (5,400,000) | $ 37,400,000 | ||||||||
Investments in non-marketable equity securities | $ 42,700,000 | $ 37,700,000 | ||||||||
Impairment related to partial write-down of equity method investment | $ 20,000,000 | |||||||||
Unrealized gain | $ 14,900,000 | |||||||||
Targeted Streaming Service | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investments in non-marketable equity securities | $ 5,000,000 | |||||||||
Equity Method Investment | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investment, ownership percentage | 50% | 50% | 50% | 50% |
Property and Equipment (Propert
Property and Equipment (Property, Plant, Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 546,940 | $ 511,924 |
Accumulated depreciation and amortization | (344,906) | (286,133) |
Property and equipment, net | 202,034 | 225,791 |
Program, service and test equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 314,234 | 279,067 |
Satellite equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 40,051 | 41,134 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 12,490 | 13,933 |
Transmission equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 30,169 | 30,925 |
Estimated Useful Lives | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 149,996 | $ 146,865 |
Minimum | Program, service and test equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 2 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Maximum | Program, service and test equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 8 years |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expenses | $ 65.8 | $ 54.8 | $ 62.4 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Equipment Under Finance Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Net amount of equipment and related accumulated amortization recorded under finance leases | $ 10,982 | $ 12,080 |
Satellite equipment | ||
Property, Plant and Equipment [Line Items] | ||
Satellite equipment | 40,051 | 41,134 |
Less accumulated amortization | (29,069) | (29,054) |
Net amount of equipment and related accumulated amortization recorded under finance leases | $ 10,982 | $ 12,080 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||||
Beginning balance | $ 709,344 | $ 686,407 | ||
Goodwill written off related to spin-off of a business unit | (476) | |||
Additions | 33,214 | |||
Purchase accounting adjustments | (2,834) | |||
Impairment charge | $ (40,700) | $ (25,100) | (40,717) | |
Amortization of "second component" goodwill | (1,344) | (1,344) | ||
Foreign currency translation | (21,030) | (8,457) | ||
Ending balance | 643,419 | 643,419 | 709,344 | |
Domestic Operations | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 353,470 | 333,502 | ||
Goodwill written off related to spin-off of a business unit | 0 | |||
Additions | 21,312 | |||
Purchase accounting adjustments | (2,834) | |||
Impairment charge | 0 | |||
Amortization of "second component" goodwill | (1,344) | (1,344) | ||
Foreign currency translation | 0 | 0 | ||
Ending balance | 349,292 | 349,292 | 353,470 | |
International and Other | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 355,874 | 352,905 | ||
Goodwill written off related to spin-off of a business unit | (476) | |||
Additions | 11,902 | |||
Purchase accounting adjustments | 0 | |||
Impairment charge | (40,717) | |||
Amortization of "second component" goodwill | 0 | 0 | ||
Foreign currency translation | (21,030) | (8,457) | ||
Ending balance | $ 294,127 | $ 294,127 | $ 355,874 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Goodwill [Line Items] | ||||||
Accumulated impairment charges | $ 163,800,000 | $ 163,800,000 | $ 123,100,000 | |||
Purchase accounting adjustments | (2,834,000) | |||||
Reduction in carrying about of goodwill | 1,344,000 | 1,344,000 | ||||
Additions | 33,214,000 | |||||
Impairment charge related to goodwill | $ 40,700,000 | $ 25,100,000 | 40,717,000 | |||
Aggregate amortization expense for amortizable intangible assets | 41,500,000 | 39,100,000 | $ 42,200,000 | |||
Impairment charges for long-lived assets | 0 | $ 0 | $ 97,100,000 | |||
Equity Method Investment | ||||||
Goodwill [Line Items] | ||||||
Equity method investment, ownership percentage | 50% | 50% | 50% | |||
Domestic Operations | ||||||
Goodwill [Line Items] | ||||||
Purchase accounting adjustments | (2,834,000) | |||||
Reduction in carrying about of goodwill | 1,344,000 | $ 1,344,000 | ||||
Additions | 21,312,000 | |||||
Impairment charge related to goodwill | 0 | |||||
International and Other | ||||||
Goodwill [Line Items] | ||||||
Purchase accounting adjustments | 0 | |||||
Reduction in carrying about of goodwill | 0 | 0 | ||||
Additions | $ 11,902,000 | |||||
Impairment charge related to goodwill | $ 40,717,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Finite and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 785,620 | $ 806,976 |
Accumulated Amortization | (450,844) | (427,442) |
Net | 334,776 | 379,534 |
Trademarks | 19,900 | 19,900 |
Total intangible assets, gross | 805,520 | 826,876 |
Total intangible assets, net | 354,676 | 399,434 |
Affiliate and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 634,000 | 649,543 |
Accumulated Amortization | (373,240) | (354,673) |
Net | $ 260,760 | 294,870 |
Affiliate and customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 6 years | |
Affiliate and customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 25 years | |
Advertiser relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 46,282 | 46,282 |
Accumulated Amortization | (34,443) | (30,235) |
Net | $ 11,839 | 16,047 |
Estimated useful lives (in years) | 11 years | |
Trade names and other amortizable intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 105,338 | 111,151 |
Accumulated Amortization | (43,161) | (42,534) |
Net | $ 62,177 | $ 68,617 |
Trade names and other amortizable intangible assets | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 3 years | |
Trade names and other amortizable intangible assets | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 20 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Schedule Of Estimated Amortization Expense) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 41,487 |
2024 | 41,416 |
2025 | 39,697 |
2026 | 35,342 |
2027 | $ 31,184 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities [Abstract] | ||
Employee related costs | $ 97,362 | $ 128,388 |
Participations and residuals | 138,384 | 133,988 |
Interest | 37,105 | 36,922 |
Restructuring and other related charges | 107,998 | 340 |
Other accrued expenses | 38,216 | 40,769 |
Total accrued liabilities | $ 419,065 | $ 340,407 |
Long-term Debt (Summary of Long
Long-term Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 26, 2021 | Feb. 08, 2021 | Jul. 28, 2017 | Mar. 30, 2016 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 2,841,250 | $ 2,875,000 | ||||
Unamortized discount | (18,718) | (23,167) | ||||
Unamortized deferred financing costs | (10,079) | (13,363) | ||||
Long-term debt, net | 2,812,453 | 2,838,470 | ||||
Current portion of long-term debt | 33,750 | 33,750 | ||||
Noncurrent portion of long-term debt | $ 2,778,703 | 2,804,720 | ||||
4.75% Notes due August 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.75% | |||||
Senior Notes | 5.00% Notes due April 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 400,000 | $ 400,000 | ||||
Interest rate | 5% | 5% | 5% | 5% | ||
Unamortized discount | $ (17,500) | |||||
Senior Notes | 4.75% Notes due August 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 800,000 | $ 800,000 | ||||
Interest rate | 4.75% | 4.75% | 4.75% | |||
Senior Notes | 4.25% Notes due February 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,000,000 | $ 1,000,000 | ||||
Interest rate | 4.25% | 4.25% | 4.25% | |||
Secured Debt | Term Loan A Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 641,250 | $ 675,000 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Feb. 26, 2021 USD ($) | Feb. 08, 2021 USD ($) | Jul. 28, 2017 USD ($) | Mar. 30, 2016 USD ($) | Dec. 17, 2012 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 18, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Proceeds from the issuance of long-term debt | $ 0 | $ 986,000,000 | $ 6,000,000 | |||||||
Issuance discount | 18,718,000 | 23,167,000 | ||||||||
Loss on extinguishment of debt | $ 0 | $ 22,074,000 | 2,908,000 | |||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||
Term Loan A Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, covenant, cash flow ratio | 5.25 | |||||||||
Minimum ratio of annual operating cash flow to annual total interest expense | 2.50 | |||||||||
Term Loan A Facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.25% | |||||||||
Debt instrument, covenant, cash flow ratio | 5 | |||||||||
Term Loan A Facility | Minimum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.25% | |||||||||
Term Loan A Facility | Minimum | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.25% | |||||||||
Term Loan A Facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.50% | |||||||||
Debt instrument, covenant, cash flow ratio | 6 | |||||||||
Term Loan A Facility | Maximum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.25% | |||||||||
Term Loan A Facility | Maximum | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.25% | |||||||||
Term Loan A Facility | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 675,000,000 | |||||||||
Term Loan A Facility | Secured Debt | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of outstanding amount under loan facility | $ 400,000,000 | |||||||||
4.25% Notes due February 2029 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||
Interest rate | 4.25% | 4.25% | 4.25% | |||||||
Proceeds from the issuance of long-term debt | $ 982,300,000 | |||||||||
4.25% Notes due February 2029 | Senior Notes | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price (as a percentage) | 102.125% | |||||||||
4.25% Notes due February 2029 | Senior Notes | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price (as a percentage) | 100% | |||||||||
4.75% Senior Notes Due 2022 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||
Interest rate | 4.75% | 4.75% | ||||||||
Redemption of principal amount | $ 400,000,000 | |||||||||
Redemption price (as a percentage) | 100% | |||||||||
Issuance discount | $ 10,500,000 | |||||||||
Loss on extinguishment of debt | $ 2,900,000 | |||||||||
Term-B Facility | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of outstanding amount under loan facility | $ 587,600,000 | |||||||||
4.75% Senior Notes Due 2022 And 5.00% Senior Notes Due 2024 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loss on extinguishment of debt | $ 22,100,000 | |||||||||
5.00% Notes due April 2024 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||
Interest rate | 5% | 5% | 5% | 5% | ||||||
Redemption of principal amount | $ 600,000,000 | |||||||||
Redemption price (as a percentage) | 102.50% | |||||||||
Issuance discount | $ 17,500,000 | |||||||||
5.00% Notes due April 2024 | Senior Notes | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price (as a percentage) | 102.50% | |||||||||
5.00% Notes due April 2024 | Senior Notes | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price (as a percentage) | 100% | |||||||||
4.75% Notes due August 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.75% | |||||||||
4.75% Notes due August 2025 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 800,000,000 | $ 600,000,000 | ||||||||
Interest rate | 4.75% | 4.75% | 4.75% | |||||||
Underwriting discounts and commissions and expenses | $ 14,000,000 | |||||||||
Redemption of notes | $ 200,000,000 | |||||||||
4.75% Notes due August 2025 | Senior Notes | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price (as a percentage) | 102.375% | |||||||||
4.75% Notes due August 2025 | Senior Notes | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price (as a percentage) | 100% | |||||||||
7.75% Senior Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 7.75% | |||||||||
Debt extinguishment including principal interest and fees | $ 703,000,000 | |||||||||
Debt proceeds used in redemption | $ 45,600,000 | |||||||||
Other debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 3.50% | |||||||||
Credit facility borrowing capacity | $ 4,500,000 | |||||||||
Outstanding borrowings on lines of credit | $ 0 | |||||||||
Other debt | Prime Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 1% |
Long-term Debt (Schedule of Deb
Long-term Debt (Schedule of Debt Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 33,750 | |
2024 | 467,500 | |
2025 | 867,500 | |
2026 | 472,500 | |
2027 | 0 | |
Thereafter | 1,000,000 | |
Long-term debt | $ 2,841,250 | $ 2,875,000 |
Fair Value Measurement (Financi
Fair Value Measurement (Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash equivalents | $ 80,000 | |
Marketable securities | $ 5,771 | |
Foreign currency derivatives | 536 | 196 |
Foreign currency derivatives | ||
Liabilities: | ||
Derivative liabilities | 8,965 | 5,911 |
Level I | ||
Assets: | ||
Cash equivalents | 80,000 | |
Marketable securities | 5,771 | |
Foreign currency derivatives | 0 | 0 |
Level I | Foreign currency derivatives | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level II | ||
Assets: | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Foreign currency derivatives | 536 | 196 |
Level II | Foreign currency derivatives | ||
Liabilities: | ||
Derivative liabilities | 8,965 | 5,911 |
Level III | ||
Assets: | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Foreign currency derivatives | 0 | 0 |
Level III | Foreign currency derivatives | ||
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurement (Carryin
Fair Value Measurement (Carrying Values and Fair Values of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 26, 2021 | Feb. 08, 2021 | Jul. 28, 2017 | Mar. 30, 2016 |
5.00% Notes due April 2024 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate | 5% | 5% | 5% | 5% | ||
4.75% Notes due August 2025 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate | 4.75% | |||||
4.75% Notes due August 2025 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate | 4.75% | 4.75% | 4.75% | |||
4.25% Notes due February 2029 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate | 4.25% | 4.25% | 4.25% | |||
Carrying Amount | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | $ 2,812,453 | $ 2,838,470 | ||||
Carrying Amount | Term Loan A Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 633,486 | 664,581 | ||||
Carrying Amount | 5.00% Notes due April 2024 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 398,687 | 397,693 | ||||
Carrying Amount | 4.75% Notes due August 2025 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 794,171 | 792,098 | ||||
Carrying Amount | 4.25% Notes due February 2029 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 986,109 | 984,098 | ||||
Estimated Fair Value | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 2,218,766 | 2,889,781 | ||||
Estimated Fair Value | Term Loan A Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 615,600 | 670,781 | ||||
Estimated Fair Value | 5.00% Notes due April 2024 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 375,348 | 403,500 | ||||
Estimated Fair Value | 4.75% Notes due August 2025 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | 607,000 | 818,000 | ||||
Estimated Fair Value | 4.25% Notes due February 2029 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt | $ 620,818 | $ 997,500 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair Value of Derivative Instruments Included in Balance Sheets) (Details) - Derivatives not designated as hedging instruments - Foreign currency derivatives - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid expenses and other current assets | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative assets | $ 141 | $ 180 |
Other assets | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative assets | 395 | 16 |
Accrued liabilities | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | 3,663 | 1,686 |
Current portion of program rights obligations | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | 82 | 0 |
Other liabilities | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | $ 5,220 | $ 4,225 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule Of Gains And Losses Related To Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Gain or (Loss) on Derivatives Recognized in OCI | $ 0 | $ 2,403 | $ (437) |
Derivatives in cash flow hedging relationships | Interest expense | |||
Derivative [Line Items] | |||
Gain or (Loss) Reclassified from Accumulated OCI into Earnings | 0 | 2,430 | |
Derivatives in cash flow hedging relationships | Interest rate swap contracts | |||
Derivative [Line Items] | |||
Gain or (Loss) on Derivatives Recognized in OCI | $ 0 | $ (27) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Other Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign currency derivatives | Miscellaneous, net | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $ (4,887) | $ (2,678) | $ (2,618) |
Leases (Summary of Lease Assets
Leases (Summary of Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 108,229 | $ 125,866 |
Finance lease assets | 10,982 | 12,080 |
Total lease assets | 119,211 | 137,946 |
Operating lease liability, current | 32,207 | 32,929 |
Finance lease liability, current | 4,204 | 3,667 |
Total current lease liabilities | 36,411 | 36,596 |
Operating lease liability, noncurrent | 105,768 | 128,319 |
Finance lease liability, noncurrent | 19,031 | 23,520 |
Total noncurrent lease liabilities | 124,799 | 151,839 |
Total lease liabilities | $ 161,210 | $ 188,435 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net of accumulated depreciation of $344,906 and $286,133 | Property and equipment, net of accumulated depreciation of $344,906 and $286,133 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of lease obligations | Current portion of lease obligations |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of lease obligations | Current portion of lease obligations |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total noncurrent lease liabilities | Total noncurrent lease liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total noncurrent lease liabilities | Total noncurrent lease liabilities |
Leases (Summary of Lease Costs)
Leases (Summary of Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease costs | $ 27,186 | $ 28,189 |
Finance lease costs: | ||
Amortization of leased assets | 1,098 | 2,105 |
Interest on lease liabilities | 1,894 | 2,346 |
Short term lease costs | 248 | 206 |
Variable lease costs | 1,468 | 854 |
Total net lease costs | $ 31,894 | $ 33,700 |
Leases (Summary of Maturity of
Leases (Summary of Maturity of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 37,365 | |
2024 | 36,215 | |
2025 | 31,994 | |
2026 | 27,717 | |
2027 | 12,636 | |
Thereafter | 7,462 | |
Total lease payments | 153,389 | |
Less: Interest | 15,414 | |
Present value of lease liabilities | 137,975 | |
Finance Leases | ||
2023 | 5,786 | |
2024 | 5,812 | |
2025 | 5,838 | |
2026 | 2,087 | |
2027 | 1,428 | |
Thereafter | 7,140 | |
Total lease payments | 28,091 | |
Less: Interest | 4,856 | |
Present value of lease liabilities | 23,235 | |
Total | ||
2023 | 43,151 | |
2024 | 42,027 | |
2025 | 37,832 | |
2026 | 29,804 | |
2027 | 14,064 | |
Thereafter | 14,602 | |
Total lease payments | 181,480 | |
Less: Interest | 20,270 | |
Total lease liabilities | $ 161,210 | $ 188,435 |
Leases (Summary of Leases) (Det
Leases (Summary of Leases) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average remaining lease term (years): | ||
Operating leases | 4 years 7 months 6 days | 5 years 1 month 6 days |
Finance leases | 6 years 7 months 6 days | 7 years 9 months 18 days |
Weighted average discount rate: | ||
Operating leases | 4.60% | 4.50% |
Finance leases | 7.50% | 7.80% |
Leases (Summary of Supplemental
Leases (Summary of Supplemental Cash Paid) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 39,857 | $ 40,000 | |
Operating cash flows from finance leases | 1,947 | 1,789 | |
Financing cash flows from finance leases | $ 3,576 | $ 3,800 | $ 3,261 |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (52,458) | $ 292,364 | $ 437,039 |
Foreign | 22,506 | 81,868 | (34,660) |
Income (loss) from operations before income taxes | $ (29,952) | $ 374,232 | $ 402,379 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current expense (benefit): | |||
Federal | $ (6,310) | $ 19,751 | $ 86,977 |
State | 2,141 | 10,360 | 17,733 |
Foreign | 18,933 | 25,990 | 23,845 |
Current expense (benefit) | 14,764 | 56,101 | 128,555 |
Deferred expense (benefit): | |||
Federal | (43,707) | 24,923 | (2,979) |
State | (3,633) | 2,715 | (405) |
Foreign | (3,349) | 6,372 | 26,543 |
Deferred expense (benefit) | (50,689) | 34,010 | 23,159 |
Tax expense (benefit) relating to uncertain tax positions, including accrued interest | (5,055) | 4,282 | (6,323) |
Income tax expense (benefit) | $ (40,980) | $ 94,393 | $ 145,391 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
State and local income taxes, net of federal benefit | 20% | 3% | 4% |
Effect of foreign operations | (11.00%) | (1.00%) | 2% |
Non-deductible compensation expenses | (35.00%) | 2% | 1% |
Excess tax deficiencies related to share-based compensation | (5.00%) | (1.00%) | 2% |
Changes in the valuation allowance | (109.00%) | 3% | 10% |
Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits | 16% | 1% | (1.00%) |
Deferral of investment tax credit benefit | 4% | (1.00%) | (1.00%) |
Deemed liquidation - controlled foreign corporation | 235% | 0% | 0% |
Other | 1% | (2.00%) | (2.00%) |
Effective income tax rate | 137% | 25% | 36% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Asset (Liability)) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
NOLs and tax credit carry forwards | $ 101,793 | $ 95,684 |
Compensation and benefit plans | 24,451 | 19,450 |
Allowance for doubtful accounts | 1,280 | 1,285 |
Fixed assets and intangible assets | 35,678 | 39,860 |
Accrued interest expense | 30,346 | 5,258 |
Unused capital losses | 60,226 | 0 |
Other liabilities | 21,618 | 15,913 |
Deferred tax asset | 275,392 | 177,450 |
Valuation allowance | (132,164) | (105,494) |
Net deferred tax asset | 143,228 | 71,956 |
Prepaid liabilities | (570) | (642) |
Fixed assets and intangible assets | (89,671) | (106,820) |
Investments in partnerships | (128,434) | (92,866) |
Other assets | (23,577) | (23,894) |
Deferred tax liability | (242,252) | (224,222) |
Total net deferred tax liability | $ (99,024) | $ (152,266) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax asset credit carry forwards | $ 59,300 | |
Foreign tax credit carry forwards | 47,300 | |
Federal and state net operating loss carryforward | 20,800 | |
Operating loss carryforwards, valuation allowance | 33,300 | |
Purchase accounting adjustments | (2,834) | |
NOLs and tax credit carry forwards | 101,793 | $ 95,684 |
Valuation allowance reduction | 21,600 | |
Second component of tax deductible goodwill, net of tax | 1,300 | |
Liability for uncertain tax positions | 6,700 | |
Accrued interest liability | 2,100 | |
Deferred tax asset, uncertain tax position | 1,700 | |
Interest benefit (net of related deferred tax) | 1,300 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 318,900 | |
Operating loss carryforwards, valuation allowance | 9,700 | |
Purchase accounting adjustments | 7,700 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward, valuation allowance | 47,300 | |
NOLs and tax credit carry forwards | 33,600 | |
Foreign Tax Authority | RLJ Entertainment | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 87,300 | |
Foreign Tax Authority | Sentai Holdings | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 6,800 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 12,193 |
Increases related to current year tax positions | 107 |
Increases related to prior year tax positions | 476 |
Decreases related to prior year tax positions | (364) |
Decreases due to settlements/payments | (1,797) |
Decreases due to lapse of statute of limitations | (3,965) |
Ending balance | $ 6,650 |
Commitments and Contingencies_2
Commitments and Contingencies (Contractual Obligation, Fiscal Year Maturity Schedule) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total purchase obligations | $ 912,167 |
Purchase obligations, Year 1 | 300,224 |
Purchase obligations, Years 2-3 | 200,680 |
Purchase obligations, Years 4-5 | 66,582 |
Purchase obligations, More than 5 years | $ 344,681 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions | Nov. 14, 2022 USD ($) | Jan. 26, 2023 claim | Jan. 20, 2021 defendant | Jul. 22, 2020 legal_matter |
California Action | ||||
Loss Contingencies [Line Items] | ||||
Number of legal matters | legal_matter | 7 | |||
Number of defendants eliminated | defendant | 8 | |||
California Action | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of remaining claims | claim | 2 | |||
MFN Litigation | ||||
Loss Contingencies [Line Items] | ||||
Claims for damages | $ | $ 200 |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | |||||
Other | $ 8,233 | ||||
Transfer from redeemable noncontrolling interest | 18,367 | ||||
Payments to noncontrolling interests | $ 2,500 | 0 | $ 0 | ||
Contingent consideration for purchase of noncontrolling interests | $ 2,806 | $ 0 | $ 0 | ||
New Video (BBC AMERICA) | |||||
Noncontrolling Interest [Line Items] | |||||
Percentage of interest acquired | 49.90% | ||||
New Video (BBC AMERICA) | Unnamed Subsidiary | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 50.10% | ||||
New Video (BBC AMERICA) | Unnamed Subsidiary | Minimum | |||||
Noncontrolling Interest [Line Items] | |||||
Put option, exercisable, term | 15 years | ||||
New Video (BBC AMERICA) | Unnamed Subsidiary | Maximum | |||||
Noncontrolling Interest [Line Items] | |||||
Put option, exercisable, term | 25 years | ||||
25/7 Media | |||||
Noncontrolling Interest [Line Items] | |||||
Percentage of interest acquired | 50% | ||||
Consideration transferred | $ 7,100 | ||||
Payments to noncontrolling interests | 2,500 | ||||
Contingent consideration for purchase of noncontrolling interests | 4,600 | ||||
Consideration transferred, fair value, net | 4,400 | ||||
Consideration transferred, tax | $ 900 |
Noncontrolling Interests (Activ
Noncontrolling Interests (Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Beginning balance | $ 283,849 | $ 315,649 |
Net earnings (losses) | (3,274) | 17,230 |
Distributions | (27,435) | (22,430) |
Distribution related to spin-off transaction | (8,233) | |
Transfer to noncontrolling interest | (18,367) | |
Other | 529 | |
Ending balance | $ 253,669 | $ 283,849 |
Equity and Long-Term Incentiv_3
Equity and Long-Term Incentive Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jun. 11, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment arrangement, noncash expense including restructuring and other related charges | $ 37,700,000 | $ 47,900,000 | $ 52,900,000 | |
Share-based compensation expense, related to restructuring and other related charges | 7,700,000 | |||
Total unrecognized share-based compensation costs | $ 21,800,000 | |||
Weighted-average remaining period | 1 year 10 months 24 days | |||
Share-based payment arrangement, amount capitalized | $ 0 | |||
Excess tax deficiencies (benefits) | 1,400,000 | (4,600,000) | 8,400,000 | |
Expense related to long-term incentive awards outstanding | $ 8,000,000 | $ 22,500,000 | $ 13,900,000 | |
Maximum | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Minimum | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
2016 Employee Stock Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
2016 Employee Stock Plan | Maximum | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200% | |||
2016 Employee Stock Plan | Minimum | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0% | |||
2011 Non-Employee Director Plan | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 100% | |||
Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Class A Common Stock | 2016 Employee Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 12,000,000 | |||
Number of share awards available for future grant | 8,175,717 | |||
Class A Common Stock | 2016 Employee Stock Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Class A Common Stock | 2011 Non-Employee Director Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 665,000 | |||
Number of share awards available for future grant | 191,989 | |||
Class A Common Stock | 2011 Non-Employee Director Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years |
Equity and Long-Term Incentiv_4
Equity and Long-Term Incentive Plans (Schedule of Restricted Stock Unit Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted stock units | 2011 Non-Employee Director Plan | ||
Number of Restricted and Performance Restricted Stock Units | ||
Granted (in shares) | 47,398 | 27,423 |
Released/Vested (in shares) | 0 | (25,133) |
Weighted Average Fair Value Per Stock Unit at Date of Grant | ||
Granted (in dollars per share) | $ 28.10 | $ 64.43 |
Released/Vested (in dollars per share) | $ 0 | $ 48.94 |
Number of Restricted Stock Units | ||
Vested award beginning balance (in shares) | 262,655 | 260,365 |
Granted (in shares) | 47,398 | 27,423 |
Released/Vested (in shares) | 0 | (25,133) |
Vested award ending balance (in shares) | 310,053 | 262,655 |
Weighted Average Fair Value Per Stock Unit at Date of Grant | ||
Vested award beginning balance (in dollars per share) | $ 51.19 | $ 49.45 |
Granted (in dollars per share) | 28.10 | 64.43 |
Released/Vested (in dollars per share) | 0 | 48.94 |
Vested award ending balance (in dollars per share) | $ 47.55 | $ 51.19 |
Restricted stock units | Parent Company | ||
Number of Restricted and Performance Restricted Stock Units | ||
Unvested award, beginning balance (in shares) | 1,189,665 | 1,002,537 |
Granted (in shares) | 920,372 | 681,303 |
Released/Vested (in shares) | (857,044) | (427,852) |
Canceled/Forfeited (in shares) | (221,269) | (66,323) |
Unvested award, ending balance (in shares) | 1,031,724 | 1,189,665 |
Number of Restricted Stock Units | ||
Granted (in shares) | 920,372 | 681,303 |
Released/Vested (in shares) | (857,044) | (427,852) |
Performance Stock Units | Parent Company | ||
Number of Restricted and Performance Restricted Stock Units | ||
Unvested award, beginning balance (in shares) | 626,284 | 1,477,622 |
Granted (in shares) | 38,264 | 364 |
Released/Vested (in shares) | (624,401) | (823,510) |
Canceled/Forfeited (in shares) | (3,162) | (28,192) |
Unvested award, ending balance (in shares) | 36,985 | 626,284 |
Number of Restricted Stock Units | ||
Granted (in shares) | 38,264 | 364 |
Released/Vested (in shares) | (624,401) | (823,510) |
Restricted Stock Units And Performance Shares | Parent Company | ||
Weighted Average Fair Value Per Stock Unit at Date of Grant | ||
Unvested award beginning balance (in dollars per share) | $ 52.97 | $ 43.79 |
Granted (in dollars per share) | 36.03 | 71.25 |
Released/Vested (in dollars per share) | 49.74 | 45.31 |
Canceled/Forfeited (in dollars per share) | 46.15 | 45.43 |
Unvested award ending balance (in dollars per share) | 44.22 | 52.97 |
Weighted Average Fair Value Per Stock Unit at Date of Grant | ||
Granted (in dollars per share) | 36.03 | 71.25 |
Released/Vested (in dollars per share) | $ 49.74 | $ 45.31 |
Equity and Long-Term Incentiv_5
Equity and Long-Term Incentive Plans (Stock Option Award Activity) (Details) - Parent Company - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Exercise Price Per Share | |||
Beginning balance (in dollars per share) | $ 0 | $ 48.26 | |
Exercised (in dollars per share) | 0 | 48.26 | |
Ending balance (in dollars per share) | 0 | $ 0 | $ 48.26 |
Options exercisable (in dollars per share) | 0 | ||
Options expected to vest in the future (in dollars per share) | $ 0 | ||
Weighted Average Contractual Term (in years) | |||
Weighted Average Contractual Term (in years) | 0 years | 0 years | 5 years 9 months 14 days |
Options exercisable | 0 years | ||
Options expected to vest in the future | 0 years | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value | $ 0 | $ 0 | $ 0 |
Options exercisable | 0 | ||
Options expected to vest in the future | $ 0 | ||
Share-based Compensation Award, Tranche One | |||
Shares Under Option Time Vesting Options | |||
Beginning balance (in shares) | 0 | 202,961 | |
Exercised (in shares) | 0 | (202,961) | |
Ending balance (in shares) | 0 | 0 | 202,961 |
Options exercisable (in shares) | 0 | ||
Options expected to vest in the future (in shares) | 0 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Total expense related to all benefit plans | $ 4.3 | $ 11.9 | $ 9.3 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Aug. 01, 2022 USD ($) installment | |
Related Party Transaction [Line Items] | ||||
Aggregate voting power | 79% | |||
Net revenues from related parties | $ 5.1 | $ 5 | $ 4.8 | |
Selling, general administrative charges from related parties | $ 8 | $ 2.2 | $ 0.5 | |
Affiliated Entity | 605, LLC | ||||
Related Party Transaction [Line Items] | ||||
Fees payable due to related party | $ 10.5 | |||
Related party, number of installments due | installment | 5 | |||
Affiliated Entity | Director | 605, LLC | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 50% | |||
Maximum | Class A Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Percent of common stock owned by related party | 3% |
Cash Flows (Summary Of Non-Cash
Cash Flows (Summary Of Non-Cash Activities And Other Supplemental Data) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-Cash Investing and Financing Activities: | |||
Operating lease additions | $ 11,885 | $ 28,522 | $ 10,904 |
Finance lease additions | 0 | 0 | 14,255 |
Capital expenditures incurred but not yet paid | 8,298 | 8,826 | 5,689 |
Contingent consideration for purchase of noncontrolling interests | 2,806 | 0 | 0 |
Supplemental Data: | |||
Cash interest paid | 125,060 | 114,528 | 131,167 |
Income taxes paid, net | $ 50,490 | $ 59,850 | $ 99,852 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 851,088 | |
Net current-period other comprehensive income (loss), before income taxes | (63,982) | $ (40,291) |
Income tax expense (benefit) | 2 | (577) |
Other comprehensive income (loss), net of income taxes | (63,980) | (40,868) |
Ending Balance | 806,988 | 851,088 |
Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (175,818) | (133,108) |
Net current-period other comprehensive income (loss), before income taxes | (63,982) | (42,694) |
Income tax expense (benefit) | 2 | (16) |
Other comprehensive income (loss), net of income taxes | (63,980) | (42,710) |
Ending Balance | (239,798) | (175,818) |
Gains (Losses) on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | (1,842) |
Net current-period other comprehensive income (loss), before income taxes | 0 | 2,403 |
Income tax expense (benefit) | 0 | (561) |
Other comprehensive income (loss), net of income taxes | 0 | 1,842 |
Ending Balance | 0 | 0 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (175,818) | (134,950) |
Ending Balance | $ (239,798) | $ (175,818) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment customer | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Revenues, net | $ 3,096,545 | $ 3,077,608 | $ 2,814,956 |
Customer Concentration Risk | Revenue Benchmark | Customer One | |||
Segment Reporting Information [Line Items] | |||
Number of customers | customer | 1 | ||
Concentration risk, percentage | 10% | ||
SVOD Services | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 501,900 | $ 370,800 | $ 185,600 |
Segment Information (Summary of
Segment Information (Summary of Continuing Operations by Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 3,096,545 | $ 3,077,608 | $ 2,814,956 |
Operating income (loss) | 86,916 | 489,922 | 442,644 |
Share-based compensation expenses | 29,986 | 47,925 | 52,908 |
Depreciation and amortization | 107,227 | 93,881 | 104,606 |
Impairment and other charges | 40,717 | 159,610 | 122,227 |
Restructuring and other related charges | 448,966 | 10,378 | 35,068 |
Cloud computing amortization | 7,342 | 2,406 | 200 |
Majority-owned equity investees AOI | 17,248 | 11,948 | 8,958 |
Adjusted operating income | 738,402 | 816,070 | 766,611 |
Capital expenditures | 44,272 | 42,572 | 46,595 |
Operating Segments | Domestic Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 2,675,142 | 2,580,616 | 2,381,401 |
Operating income (loss) | 286,517 | 617,875 | 734,871 |
Share-based compensation expenses | 12,815 | 22,077 | 10,605 |
Depreciation and amortization | 49,588 | 48,025 | 50,574 |
Impairment and other charges | 0 | 143,000 | 0 |
Restructuring and other related charges | 423,205 | 2,516 | 22,946 |
Cloud computing amortization | 23 | 0 | 0 |
Majority-owned equity investees AOI | 17,248 | 11,948 | 8,958 |
Adjusted operating income | 789,396 | 845,441 | 827,954 |
Capital expenditures | 4,572 | 9,635 | 12,301 |
Operating Segments | International and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 442,525 | 511,317 | 453,230 |
Operating income (loss) | 3,031 | 37,167 | (109,365) |
Share-based compensation expenses | 3,900 | 3,627 | 2,988 |
Depreciation and amortization | 18,487 | 19,807 | 26,465 |
Impairment and other charges | 40,717 | 16,610 | 122,227 |
Restructuring and other related charges | 2,854 | 6,083 | 6,410 |
Cloud computing amortization | 0 | 0 | 0 |
Majority-owned equity investees AOI | 0 | 0 | 0 |
Adjusted operating income | 68,989 | 83,294 | 48,725 |
Capital expenditures | 6,039 | 6,009 | 9,057 |
Corporate / Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | (21,122) | (14,325) | (19,675) |
Operating income (loss) | (202,632) | (165,120) | (182,862) |
Share-based compensation expenses | 13,271 | 22,221 | 39,315 |
Depreciation and amortization | 39,152 | 26,049 | 27,567 |
Impairment and other charges | 0 | 0 | 0 |
Restructuring and other related charges | 22,907 | 1,779 | 5,712 |
Cloud computing amortization | 7,319 | 2,406 | 200 |
Majority-owned equity investees AOI | 0 | 0 | 0 |
Adjusted operating income | (119,983) | (112,665) | (110,068) |
Capital expenditures | 33,661 | 26,928 | 25,237 |
Corporate / Inter-segment eliminations | Domestic Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | (17,643) | (10,584) | (15,852) |
Corporate / Inter-segment eliminations | International and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | (3,479) | (3,741) | (3,823) |
Subscription | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 1,618,541 | 1,568,576 | 1,385,115 |
Subscription | Operating Segments | Domestic Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 1,395,026 | 1,318,732 | 1,145,970 |
Subscription | Operating Segments | International and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 223,515 | 249,844 | 239,145 |
Subscription | Corporate / Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 0 | 0 | 0 |
Content licensing and other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 606,154 | 558,378 | 554,025 |
Content licensing and other | Operating Segments | Domestic Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 491,870 | 416,898 | 433,954 |
Content licensing and other | Operating Segments | International and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 135,406 | 155,805 | 139,746 |
Content licensing and other | Corporate / Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | (21,122) | (14,325) | (19,675) |
Distribution and other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 2,224,695 | 2,126,954 | 1,939,140 |
Distribution and other | Operating Segments | Domestic Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 1,886,896 | 1,735,630 | 1,579,924 |
Distribution and other | Operating Segments | International and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 358,921 | 405,649 | 378,891 |
Distribution and other | Corporate / Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | (21,122) | (14,325) | (19,675) |
Advertising | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 871,850 | 950,654 | 875,816 |
Advertising | Operating Segments | Domestic Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 788,246 | 844,986 | 801,477 |
Advertising | Operating Segments | International and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 83,604 | 105,668 | 74,339 |
Advertising | Corporate / Inter-segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 0 | $ 0 | $ 0 |
Segment Information (Summary _2
Segment Information (Summary of Inter-segment Eliminations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 3,096,545 | $ 3,077,608 | $ 2,814,956 |
Corporate / Inter-segment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | (21,122) | (14,325) | (19,675) |
Corporate / Inter-segment Eliminations | Domestic Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | (17,643) | (10,584) | (15,852) |
Corporate / Inter-segment Eliminations | International and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | $ (3,479) | $ (3,741) | $ (3,823) |
Segment Information (Schedule o
Segment Information (Schedule of Revenue by Geographic Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 3,096,545 | $ 3,077,608 | $ 2,814,956 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 2,574,504 | 2,462,210 | 2,267,754 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 354,492 | 432,682 | 385,787 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | $ 167,549 | $ 182,716 | $ 161,415 |
Segment Information (Schedule_2
Segment Information (Schedule of Fixed Assets by Geographic Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 202,034 | $ 225,791 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 187,833 | 210,252 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 12,520 | 14,510 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 1,681 | $ 1,029 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 8,030 | $ 11,234 | $ 5,733 |
Provision for (Recovery of) Bad Debt | 2,202 | 5,337 | (2,843) |
Deductions/ Write-Offs and Other Charges, Net | (1,507) | (8,541) | |
Deductions/ Write-Offs and Other Charges, Net | 8,344 | ||
Balance at End of Period | $ 8,725 | $ 8,030 | $ 11,234 |
Uncategorized Items - amcx-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |